The Central Bank of the Republic of Turkey (CBRT) raised its policy rate from 42.5% to 46%, following three consecutive interest rate cuts. This decision stands in contrast to market expectations of stable rates.
In its statement after the rate hike, the Central Bank noted that the main trend of inflation decreased in March. However, it predicted that basic goods inflation would increase in April, while service inflation would remain flat.
Additionally, the bank emphasized that protectionist tendencies in global trade and pricing behaviors pose a risk to the disinflation process. In the currency markets, the decision led to a limited decline in the USD/TRY rate, which dropped to 38.09.
