Turkey: CBRT increases policy rate by 200 basis points to 10.25%

The Central Bank of the Republic of Turkey (CBRT) announced on Thursday that it raised its policy (one-week repo) rate by 200 basis points to 10.25%.

In its policy statement, the CBRT noted that it looks to restore the disinflation process and support price stability with the decision to hike the policy rate.

“Demand-driven disinflationary effects were expected to become more prevalent,” the CBRT said in its policy statement.

Only three of the 17 experts polled by Reuters had expected the central bank to raise interest rates today.

The Lira rose to 7.5600 against the dollar after the interest rates were announced, from about 7.71 before that.