The Central Bank of Türkiye

The Central Bank of Türkiye targets to lower its policy interest rate to 21 percent by the end of 2025, the bank's governor has said.

Speaking at the Istanbul Chamber of Industry (ISO), Fatih Karahan said on Nov. 27 projections related to the underlying trend of inflation improved, albeit slower than anticipated.

The Central Bank of Türkiye has hiked its key interest rate by another 250 basis points to 45 percent, also signaling an end to its aggressive tightening cycle.

The Central Bank of Türkiye has increased the key interest rate for a seventh consecutive month but said it is nearing the end of the monetary tightening cycle.

As widely expected, the bank hiked the policy rate - the one-week repo auction rate - by 250 basis points to 42.5 percent at the Monetary Policy Committee's last meeting of 2023 on Dec. 21.

The Central Bank of Türkiye has said that the monetary tightening process will continue until a significant improvement in the inflation outlook is achieved.

The bank's Monetary Policy Committee (MPC) on June 22 decided to lift its policy rate - the one-week repo auction rate - from 8.5 percent to 15 percent, the first rate hike since March 2021.

President Recep Tayyip Erdoğan has vowed to fight inflation and to establish a finance management team with global reputation.

"Eliminating the problems caused by the rise of prices and compensate for welfare losses are the most urgent issues in the days ahead," Erdoğan said in a speech he delivered in Ankara after winning the second round of the presidential election.