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The Central Bank of Turkey on Thursday hiked interest rates to a 42.5% in a bid to combat rampant inflation.
The 2.5 percentage point rise, which was in line with forecasts, came as inflation last month was 62%.
“The existing level of domestic demand, stickiness in services inflation, and geopolitical risks keep inflation pressures alive. On the other hand, recent indicators suggest that domestic demand continues to moderate as monetary tightening is reflected in financial conditions,” said the central bank in a statement.
The dollar
USDTRY,
was steady vs. the Turkish lira on Thursday but has soared 56% this year.
