The Turkish Central Bank is moving towards raising interest rates to 45%

The Turkish Central Bank will hold its meeting on Thursday, where it’s expected to make important decisions regarding interest rates in light of expectations of a continued increase in monetary tightening.

In an expected move, the central bank is supposed to raise interest rates by up to 250 basis points, reaching 45%.

This increase aims to try to control the inflation rate, which reached alarming levels of 70% at the end of last year.

This step comes after Türkiye adopted its flexible interest rate policy, especially with inflation rising significantly.

The central bank raised interest rates unprecedentedly from 7% last June to 42% last month, showing an escalation in efforts to contain inflation.