Turkey: CBRT increases policy rate by 200 basis points to 10.25%


The Central Bank of the Republic of Turkey (CBRT) announced on Thursday that it raised its policy (one-week repo) rate by 200 basis points to 10.25%.

In its policy statement, the CBRT noted that it looks to restore the disinflation process and support price stability with the decision to hike the policy rate.

"Demand-driven disinflationary effects were expected to become more prevalent," the CBRT said in its policy statement and acknowledged that inflation followed a higher-than-envisaged path. "Tightening steps taken since August should be reinforced in order to contain inflation expectations," the CBRT added.

Market reaction

With the initial market reaction, the USD/TRY pair fell sharply and was last seen losing 1.5% on the day at 7.5730.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD fuelled 0.2% by strong PMI Composite in early Asia

AUD is up on the day so far as early data gives the bulls a head start. Early Asia has been kind to Aussie bulls with the price of the currency extending its late New York gains with a robust Construction PMI report, solidly above the 50.0 expansion level, arriving at 54.2.

AUD/USD News

NZD/USD bullish bets above 0.6690 marked down by CPI miss

NZD/USD bulls have been stopped in their tracks by the miss in the CPI data. The US dollar found a lease of life on Wall Street, bulls encouraged by data. New Zealand's CPI was released in recent trade which has changed the bird's flight trajectory in early Asia.

NZD/USD News

XAU/USD’s reversal extends to $1,900 area

Gold’s upside attempt witnessed on Wednesday has been short-lived as the precious metal was unable to extend gains beyond $1.930 area. XAU/USD has given away gains on Thursday, with US dollar demand picking up amid a sourer market sentiment and upbeat US macroeconomic figures.

Gold News

Bitcoin rises to new yearly highs while the rest of the crypto market follows

Bulls are finally making a comeback into the market and regaining full control of the price across the board. According to the data by CoinMarketCap, a massive $22 billion has come into the market amid Bitcoin’s recovery beyond $13,000.

Read more

WTI bulls keep the fuell buring into Wall Street close

West Texas Intermediate crude oil is higher on the day, although has run into resistance and started to consolidate.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures