The Turkish Central Bank hiked its policy interest rate by 750 basis points to 25% on Thursday.
The bank’s monetary policy committee decided to continue the monetary tightening strategy in pursuit of 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.
Following the decision, Mehmet Şimşek, Türkiye’s minister of treasury and finance, underscored the importance of price stability.
“We are determined! Price stability remains our foremost objective,” he stated in his concise message on X, formerly known as Twitter.
Fiyat istikrarı en büyük önceliğimiz…
— Mehmet Simsek (@memetsimsek) August 24, 2023
By Breaking News Turkey with AA