Central Bank of the Republic of Türkiye Raises One-Week Repo Rate by 250 Basis Points to 45.00%

The Central Bank of the Republic of Türkiye raised its one-week repo rate by 250 basis points to 45.00% on 25 January 2024, extending the tightening cycle launched under its orthodox policy framework, with consumer price inflation running at more than 60% annually.

The increase follows a sequence of hikes that began after Turkish policymakers abandoned the low-rate strategy. The shift to orthodox policy commenced following national elections in mid-2023.

TIGHTENING CYCLE DECLARED COMPLETE

The Committee said it assessed that the monetary tightness required to establish the disinflation course had been achieved and that this level would be maintained as long as needed, until there is a significant decline in the underlying trend of monthly inflation and inflation expectations converge to the projected forecast range.