By Tuba Ongun
ANKARA (AA) – The Central Bank of Türkiye on Thursday raised its policy rate, also known as the one-week repo rate, by 250 basis points to 42.5%, meeting economists' expectations.
Economists polled by Anadolu in a survey last week estimated the bank would deliver a rate hike of 250 basis points.
The Monetary Policy Committee decided to reduce the pace of monetary tightening, as the monetary tightness is significantly close to the level required to establish the disinflation course, said the statement.
It added: "The committee anticipates to complete the tightening cycle as soon as possible."
According to the latest data from TurkStat, Türkiye's annual inflation rose to 61.98% in November, the highest rate so far this year.
The bank pledged to continue to implement quantitative tightening by extending the sterilization tools at its disposal to support the monetary tightening process.
At its November meeting, the bank increased its policy rate by 500 basis points to 40%, above market consensus.