Turkey's Central Bank Raises Key Interest Rate to 45% Amid Inflation Crisis

The eighth hike since Erdogan's policy shift, as inflation nears 65% and households struggle with cost of living.

Turkey's central bank has raised its key interest rate by another 2.5 percentage points, bringing the benchmark rate to 45%.
This is the eighth interest rate hike since President Recep Tayyip Erdogan abandoned his unconventional economic policies.
Inflation in Turkey reached nearly 65% in December, and many households are struggling to afford basic goods.
Erdogan appointed a new economic team headed by former Merrill Lynch banker Mehmet Simsek, and Hafize Gaye Erkan, a former U.S.-based bank executive, took over as central bank governor.
Under Erkan's tenure, borrowing costs have increased from 8.5% to the current 45%.