Turkey’s Central Bank delivers moderate rate hike

ANKARA — Turkey’s Central Bank hiked interest rates Thursday by another 250 basis points, from 40% to 42.5%.  

The moderate hike was largely expected after the bank vowed to slow the pace of its increases and complete ​​a monetary tightening cycle over a short period of time following its previous meeting, in late November. Several polls from earlier this week had suggested an increase of 250 basis points. 

Explaining the slowing down, the bank said monetary tightening is now significantly close to the level required to establish a course of disinflation.

Although anticipating an end to the tightening cycle “as soon as possible,” the bank stressed that the current interest rate will be sustained in the current range “as long as needed to ensure sustained price stability.”