Türkiye raises policy interest rate by 750 basis points

ISTANBUL

The Turkish Central Bank increased its policy interest rate by 750 basis points to 25% on Thursday.

The bank’s monetary policy committee decided to continue the monetary tightening process for disinflation.

“Recent indicators point to a continued increase in the underlying trend of inflation,” the bank said.

It added: “The strong course of domestic demand, cost pressures stemming from wages and exchange rates, stickiness of services inflation and tax regulations have been the main drivers.”

The bank’s simplification process will continue gradually, it said.