The Central Bank of the Republic of Turkey (CBRT) announced on Thursday it decided to raise its policy rate, or the one-week repo auction rate, from 17.5% to 25%.
"The Committee decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior," the central bank said in a press release.
The CBRT warned that recent indicators pointed to a "continued increase in the underlying trend of inflation" and added it will continue to adjust the policy rate as necessary in order to bring inflation down to its 5% target in the medium term. According to latest data, Turkish inflation stood at 47.83% in July.