Turkey's Central Bank raises interest rates by 200 bps

Turkey's Central Bank raises interest rates by 200 bps

ANKARA- Anadolu Agency

Turkey's Central Bank on Sept. 24 raised its one-week repo rate- also known as the bank's policy rate- by 200 basis points.

The bank's policy rate increased to 10.25% from 8.25%.

The decision was announced in a statement following the bank's eighth Monetary Policy Committee (MCP) meeting this year.

In the previous three consecutive meetings, the bank kept the rate constant at 8.25%, following a gradual cut of 375 basis points from 12% over the preceding months.

Last year, in eight meetings, the bank cut the rate by a total of 1,200 basis points from 24%.

After holding eight meetings last year, this year the bank boosted the number of MPC meetings to 12.

The move surprised the market as a panel of 23 economists surveyed by Anadolu Agency on Monday forecast the bank would hold interest rates steady, with just four predicting an increase, ranging between 0.50 and 1.50 percentage