Turkey’s central bank raised interest rates for a second consecutive month on Thursday, as a new team installed by President Recep Tayyip Erdogan attempts to rescue the country’s troubled economy.
The bank raised the country’s benchmark interest rate, the one-week repo rate, to 17.5% from 15% after increasing rates in June for the first time since 2021. The increase was lower than expected by some analysts who have called for the bank to take aggressive action to tamp down rampant inflation.
The decision is the latest by the country’s new central bank governor, Hafize Gaye Erkan, a former executive of First Republic Bank and Goldman Sachs, who was appointed after Erdogan won a close-fought re-election in May.
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