On April 17, 2025, the Central Bank of Turkey increased its key interest rate by 350 basis points, reversing the prior easing cycle that commenced in December 2024. Its new rate stands at 46%, influenced by rising inflation and global protectionism worries.
The bank forecasts a rise in monthly core goods inflation for April 2025, alongside expectations of robust domestic demand. Despite a slight slowdown, the financial institution aims for price stability through stringent monetary policy measures.
Turkey’s central bank also highlighted concerns regarding global protectionism’s impact on inflation. The monetary authority is closely monitoring the potential effects on disinflation amid intensified trade tensions, which has led to a notable depreciation of the local currency.
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