Türkiye's central bank hikes key interest rate to 45%

The Central Bank of Türkiye raised its benchmark interest rate by 2.5 percentage points at a meeting on January 25.

TRT Haber reported, citing a central bank statement, that the seven-day repo rate was raised to 45 per cent per annum from 42.5 per cent.

The current rate is the highest since 2003. Since June last year, it has undergone eight consecutive increases totalling 36.5 per cent to combat inflation.

According to Central Bank management, the level of monetary tightening needed to slow inflation has already been achieved and the current discount rate will be maintained until inflation falls significantly and inflation expectations reach the target range.