The Turkish Central Bank raises the interest rate to 40 percent

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The Turkish Central Bank announced on Thursday that it raised the interest rate by 500 basis points to 40 percent on repo operations for a week.

This came during a meeting of the Central Bank’s Monetary Policy Committee, headed by the Bank’s Governor, Hafiza Ghaya Arkan, according to a statement issued by the bank.

The statement stressed that the improvement in external financing conditions, the continuous increase in reserves, support for balancing demand for the current account, and the increase in domestic and external demand for Turkish lira assets contribute strongly to the stability of the exchange rate and the effectiveness of monetary policy.

Last month, the Central Bank raised the interest rate by 500 basis points to 35 percent on one-week repurchase operations.