Turkish central bank raises interest to 25%

Türkiye’s central bank hiked interest rates on Thursday by more than expected to 25 percent, in a new sign of a return to more traditional economic policies under President Recep Tayyip Erdogan.

The Turkish central bank committee said it “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 bank said it expected year-end inflation to sit in the “upper bound of the forecast range.”