Turkey raises its key interest rate to 17.5%

Turkey’s central bank raised on July 20 its key interest rate to 17.5%, the highest level since October 2021.

The 2.5% hike came a month after the bank raised rates from 8.5% to 15% following more than a year of rate-cutting prompted by Turkish President Recep Tayyip Erdogan.

In June, the bank had increased its policy rate by 650 basis points to 15% in the first hike in 27 months.

The rate had been 18% in September 2021 before being cut to 16% the next month.