The Turkish Central Bank raises interest rates to 35% and insure the improvement of its foreign reserves

The Turkish Central Bank raised interest rates by 500 basis points to 35% on Thursday, as expected, continuing its tightening policy for the third month in a row while intensifying its efforts to curb inflation.
In a poll conducted by Reuters, most economists expected an interest rate increase of 500 basis points, while 4 economists expected an interest rate increase of 250 points and one economist expected 300 points.
Interest rates have risen 2,650 basis points since last June.
The bank’s policy committee reaffirmed that it’s ready to raise interest rates further as needed to reduce inflation, which rose to an annual rate of 61.53% last September and is expected to rise next year.
On the same aspect, and according to data published on Thursday, the Turkish Central bank revealed that the net international reserves at the Turkish Central Bank rose by $479 million to $22.55 billion in the week ending October 20.
Reserves fell to -$5.7 billion in the week ending June 2, which is the lowest level since the start of data publication in 2002, as the authorities sought to meet the demand for foreign exchange and stabilize the Turkish currency before the elections, and reserves have recovered since then.