Turkey's Central Bank Continues Aggressive Interest Rate Hikes to Tackle Inflation

Turkey's central bank has raised its key interest rate from 30% to 35% in an effort to curb inflation, which has been forecasted to reach over 60% by the end of 2023. The central bank stated that the price rises were stronger than expected and that monetary tightening is necessary to control inflation expectations. This decision follows a series of rate hikes since June, as the central bank shifts away from a period of unorthodox monetary policy. Economists suggest that further rate hikes are needed to sustain investor optimism and rebuild the bank's credibility.