Global Macro Service > Research Briefings > Turkey

Big surprise from CBRT, hiking the policy rate

The central bank of Turkey (CBRT) hiked the policy rate by 200bp, to 10.25%, at today’s critical meeting, surprising markets. The conduct of monetary policy has long been undermined by overarching policy preferences, that focus on growth; as a result, we and the consensus expected no change. Today’s move, which automatically also lifts other rates in operation, should help stabilise the lira and ward off risks to inflation.

To read the full briefing please
If you are not a subscriber, request a free trial of our Global Macro Service by filling out the form below