The Central Bank of Turkey raised the key rate to 46%

The Central Bank of Turkey has decided to raise the discount rate from 42.5% to 46%. This was announced on April 17 by the press service of the regulator on the website.

"A resolute approach to tightening monetary policy (DKP) strengthens the process of reducing inflation by reducing domestic demand, a real appreciation of the Turkish lira and improving inflation expectations," the report said.

In addition, the bank raised the one-day loan rate from 46% to 49% and the overnight deposit rate from 41% to 44.5%.

The Central Bank of Turkey clarified that the tight monetary policy will remain in place until price stability is achieved through a steady reduction in inflation. In addition, the Central Bank plans to "carefully adjust the interest rate at each meeting" and take into account forecasts.

Earlier, on December 28, 2024, Turkish President Recep Erdogan called on the country's citizens to boycott goods and services with inflated prices. The Head of the country indicated that the main goal of the program is to compensate as soon as possible for the losses suffered by the country due to the imbalance of the exchange rate and inflation.

In addition, on December 26 last year, the Central Bank of Turkey announced a reduction in the discount rate from 50% to 47.5%. Then the key rate went down for the first time in two years.