Cityscape at sunset on March 4, 2024 in Istanbul, Türkiye.
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The Central Bank of Turkey surprised the markets on Thors Day when it increased its key interest rate, the repurchase rate of one week, from 42.5% to 46%, which ended the flexion cycle in December or last year.
The decision occurred behind the back of the economic interruption due to American tariffs and the great political and investor infreaded in the trial of the mayor of Istanbul and the opposition leader Ekrem Imamoglu in March.
“The decision regarding narrow monetary position is strengthening the disinflation process through moderation in domestic demand, the real assessment of the Turkish lyre and the improvement in inflation expectations,” the Turkish monetary policy committee.
The Committee cited “potential effects of the growing protectionism in global trade in the disinflation process through global economic activity, the prices of basic products and capital flows”, and said: “The narrow monetary posture will be a stability of aquatic disaster disaster.”
Annual inflation in Türkiye reached 38.1% in March.
This is a development story and will be updated shortly.