Turkey's Central Bank raises interest rates by 200 bps
ANKARA- Anadolu Agency
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