The Central Bank of Turkey, at its latest meeting, maintained the key interest rate at 50%. The regulator emphasised that although the rate remains unchanged, it is closely monitoring inflationary risks. In a press release, the Central Bank stated that tight monetary policy will continue until there is a significant and sustained decrease in inflation. Should the situation worsen, the Turkish Central Bank is prepared to take additional measures to stabilise it.

Since mid-2023, Turkish authorities have been tightening monetary policy, ending the years-long strategy of low rates that President Tayyip Erdogan had used to stimulate economic growth. Over this period, the Central Bank has raised the rate by 4,150 basis points (bps). In addition to this, the government introduced tax reduction and austerity measures aimed at overcoming the effects of currency crises and rising prices.

According to a Reuters poll of economists, they expect the Central Bank of Turkey to cut the key interest rate by 250 bps by the end of next year. As for the country's GDP, experts forecast growth of around 3% in 2024 and 2025, which is lower than the government’s projection of 3.5%. This slowdown in economic growth is the result of ongoing measures to combat inflation.