Central Bank of Türkiye interrupts cycle of raising key rate

The Central Bank of Türkiye has interrupted the key rate increase cycle that began in June 2023 and left it at 45%, Report informs referring to the regulator’s statement.

“It was decided to leave the key rate at 45%,” reads the statement.

In January, the regulator increased the rate to 45% from 42.5%.

For eight months, the Turkish Central Bank raised the rates.

Previously, market participants predicted inflation at the end of the year at more than 42%, and the dollar exchange rate against the national currency - the lira at 40. Meanwhile, the new governor of the Central Bank of Türkiye, Fatih Karahan, previously announced that the regulator maintained the inflation forecast for the end of this year at 36%. Turkish political authorities, in turn, expect that by the end of the year inflation will drop to 34%.