Hafize Gaye Erkan

Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation.

The central bank said it was keeping the benchmark one-week repo rate on hold, according to a statement. It was the bank's first interest rate decision under its newly appointed governor, Fatih Karahan.

Eyes will be on Fatih Karahan, who took the helm of the Turkish Central Bank last week, as he is set to present the banks' first quarterly inflation report of 2024 on Feb. 8.

Türkiye's central bank chief Hafize Gaye Erkan said on Feb. 2 that she was resigning after less than a year on the job.

Turkish President Tayyip Erdogan decried on Wednesday efforts to spread "rumors" meant to undermine economic progress, in an apparent endorsement of Central Bank Governor Hafize Gaye Erkan, who had criticized a recent press report about her family.

Treasury and Finance Minister Mehmet Şimşek has held a meeting in Spain with representatives of Spanish companies and the finance industry.

"Our international investor meetings continue in Spain," Şimşek wrote on the social media platform X, formerly Twitter.

President Recep Tayyip Erdoğan has given his "full" support to the new economic policy, Treasury and Finance Minister Mehmet Şimşek has said.

Şimşek and Central Bank Governor Hafize Gaye Erkan met with journalists at a briefing on the government's new medium-term program in the capital Ankara.

Establishing price stability remains the top priority for the government, read a statement released after a meeting of the Economy Coordination board, adding that members of the board also discussed details of the key medium-term program to be announced later this year.

Treasury and Finance Minister Mehmet Şimşek has met with a group of international investors at a forum.

Şimşek attended the closed-door Türkiye Economic Forum organized by JP Morgan in Istanbul and made a presentation on the Turkish economy.

Turkey's new-look economic team met for the first time with international investors on Friday, with questions over how far it will hike interest rates to head off rebounding inflation high on the agenda.

Türkiye's Central Bank has increased its policy rate - one-week repo rate - from 15 percent to 17,5 percent.

The rate hike was widely expected after Mehmet Şimşek once again took the helm at the economy management and Hafize Gaye Erkan was appointed as the new Central Bank Governor.