On November 23rd, the Central Bank of Turkey announced that it would raise the benchmark interest rate by 500 basis points from 35% to 40%. This marks the sixth consecutive interest rate hike since the Central Bank of Turkey entered a tightening cycle in June.

        In a statement released on the same day, the Central Bank of Turkey stated that the Monetary Policy Committee assessed that the current implementation of monetary tightening policies is very close to achieving the goal of reducing inflation. Turkey's inflation rate saw a slight decrease in October, and the process of monetary tightening is expected to slow down accordingly, with the tightening cycle ending in a short period.

        The statement mentioned that the Central Bank of Turkey's Monetary Policy Committee will adjust the benchmark interest rate according to the situation to create a suitable monetary and financial environment, thus achieving the medium-term target of a sustained decline in inflation to 5%.

Since 2022, Turkey's inflation rate has remained high, reaching 85.51% in October 2022. In August and September of this year, the rates were 58.94% and 61.53%, respectively, with a slight decrease to 61.36% in October.

        From September 2021 to February 2023, the Central Bank of Turkey had cut interest rates multiple times, reducing the benchmark rate from 19% to 8.5%. In June of this year, the Central Bank raised the benchmark interest rate by 650 basis points to 15%, marking the first interest rate hike since March 2021. In October, the Central Bank raised the benchmark interest rate to 35%.