Turkey maintains key rate at 45%, concludes 8-month hiking cycle

Are you wondering about the current economic situation in Turkey? Well, Turkey’s central bank recently announced that it will be keeping its key interest rate at 45% despite soaring inflation. This decision comes after eight consecutive months of rate hikes, with consumer prices in the country jumping significantly.

In January alone, consumer prices in Turkey rose by 6.7% from December, marking the biggest monthly jump since August. Year-on-year, inflation in January stood at a staggering 64.8%. Despite this, the central bank has decided to hold rates steady, signaling continuity with the policies of the previous governor and suggesting that no easing of rates is on the horizon.

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Analysts predict that the interest rate will remain unchanged for most of 2024, with inflation expected to decrease by the end of the year. This could potentially lead to monetary easing in the future, but for now, it seems that interest rates will remain steady.

Overall, the economic outlook for Turkey remains uncertain, with many experts predicting that interest rates will stay the same throughout the year. However, there is a possibility of rate cuts in early 2025. We will have to wait and see how the situation unfolds in the coming months.

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