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| Türkiye announces massive interest rate hike | Türkiye announces massive interest rate hike |
| (32 minutes later) | |
| The 7.5 percentage point increase comes as Ankara returns to more “rational” economic policies, economists say | The 7.5 percentage point increase comes as Ankara returns to more “rational” economic policies, economists say |
| The Turkish central bank raised its benchmark interest rate by 7.5 percentage points on Thursday to 25%, in a bid to curb spiraling inflation. | |
| The hike was significantly higher than the increase to 20% that many economists had expected. | The hike was significantly higher than the increase to 20% that many economists had expected. |
| The regulator opted for a major increase in a sign of a turn to more “rational” economic policies after years of rate-cutting, which has been blamed for fueling inflation and the cost-of-living crisis in Türkiye. | The regulator opted for a major increase in a sign of a turn to more “rational” economic policies after years of rate-cutting, which has been blamed for fueling inflation and the cost-of-living crisis in Türkiye. |
| Thursday’s hike is further evidence that policymakers in Ankara are following through on their pledge to return to a more conventional approach to monetary policy. The lira rallied strongly in the wake of the move. | Thursday’s hike is further evidence that policymakers in Ankara are following through on their pledge to return to a more conventional approach to monetary policy. The lira rallied strongly in the wake of the move. |
| The governor of the Turkish central bank, Hafize Gaye Erkan, who was appointed in June, has nearly tripled benchmark interest rates from 8.5% since being appointed. | The governor of the Turkish central bank, Hafize Gaye Erkan, who was appointed in June, has nearly tripled benchmark interest rates from 8.5% since being appointed. |
| The regulator does not rule out further tightening in the coming months until the inflation situation in Türkiye improves. Price growth jumped from 38% in June to almost 48% in July. | The regulator does not rule out further tightening in the coming months until the inflation situation in Türkiye improves. Price growth jumped from 38% in June to almost 48% in July. |
| The surging inflation has driven the central bank to sharply revise upwards its year-end inflation forecast from 22.3% to 58%. | The surging inflation has driven the central bank to sharply revise upwards its year-end inflation forecast from 22.3% to 58%. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |