Turkey Raises Interest Rates to 30%
By Ed Frankl
Turkey's central bank on Thursday raised its key interest rate for the fourth consecutive meeting, as it continues a series of steep rate hikes after inflation rose again in August.
The bank raised the country's benchmark interest rate, the one-week repo rate, to 30% from 25%. After a number of cuts, the bank increased rates in June for the first time since 2021.
The rise matches expectations ahead of the decision of a key rate of 30%, according to a consensus of economists polled by FactSet.
It came after Turkey's annual inflation rose in August to close to 59%, from 48% in July, indicating the challenge for policymakers in the country of nearly 85 million people.
The Turkish lira, which has fallen more than 30% against the dollar since the start of the year, fell slightly against the dollar after the decision.
The hike continues what many see as a return to more orthodox monetary policy under Governor Hafize Gaye Erkan, a former executive of First Republic Bank and Goldman Sachs, who was appointed in June after President Recep Tayyip Erdogan won a close-fought re-election.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
September 21, 2023 07:26 ET (11:26 GMT)
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