The Central Bank of Türkiye on Thursday hiked its policy rate, also known as the one-week repo rate, by 250 basis points to 45%, in line with market expectations, Paralel.Az-Economics reports.

The bank will maintain the current level of the policy rate until there is a significant drop in monthly inflation and until inflation expectations converge to the projected forecast range, it said in a statement following its first Monetary Policy Committee meeting of the year.

Türkiye's annual inflation reached a 13-month high of 64.77% in December 2023, according to TurkStat, the country’s statistical authority.

Last year, the bank raised its policy rate a total 3,400 basis points from just 8.5% to 42.5%.