Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround

By SUZAN FRASER and AYSE WIETING
Associated Press

ANKARA, Turkey (AP) — The Turkish central bank has delivered a large interest rate increase, signaling a shift toward more conventional economic policies to counter sky-high inflation. The bank on Thursday raised its key rate by 6.5 percentage points, boosting it to 15%. The increase — a significant jump from the current 8.5% — is the first since March 2021 and comes after President Recep Tayyip Erdogan appointed two internationally respected officials to head the bank and the finance ministry. The rate hike is an indication that the country is moving away from Erdogan’s unorthodox belief that lowering interest rates fights inflation.