Serrari Group

Turkey’s central bank declared a substantial increase in its key interest rate on Thursday. The benchmark one-week repo rate surged by an unexpected 500 basis points, reaching a remarkable 40%. This decision, doubling economists’ projections of a 250-basis-point hike, sent ripples through financial markets.

The Turkish lira responded immediately, trading at 28.766 to the dollar, exhibiting a modest gain against the greenback post-announcement. The central bank’s initiative aimed to tackle the country’s escalating inflation, which hit a concerning 61% in October.

Market analysts expressed a combination of surprise and appreciation for the central bank’s bold move. Timothy Ash, an emerging markets strategist at BlueBay Asset Management, commended the unexpected decision, stating, “Impressive move by the CBRT – going beyond expectations.”

Ash, among the few anticipating this bold step, acknowledged the central bank’s commitment to combating inflation, saying, “These professionals are committed to curbing inflation. Recognition is due.”

This assertive interest rate hike builds upon a series of incremental increases, marking a departure from past loose monetary policies contributing to Turkey’s economic challenges. The lira’s value has experienced a significant decline, dropping 35% against the dollar year-to-date and undergoing an 80% depreciation against the greenback over the last five years.

The central bank’s decision, viewed as a necessary step to stabilize the economy, adds to the financial strain experienced by the Turkish population. As Turkey grapples with economic turbulence, the central bank’s decisive measures underscore its determination to restore stability, even at the short-term cost of financial discomfort for its citizens.

Observers in the global financial community now closely monitor the impact of this unprecedented move on Turkey’s economic trajectory in the coming months.
By: Montel Kamau
Serrari Financial Analyst
23rd November, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023