Turkey’s central bank opts for another interest rate hike in efforts to curb inflation

ANKARA, Turkey (AP) — Turkey’s central bank has hiked interest rates again in efforts to curb inflation, pressing ahead with more conventional economic policies recently embraced by President Recep Tayyip Erdogan. The bank raised its policy rate by 5 percentage points to 35% on Thursday after inflation hit 61.53% last month. It was the bank’s fifth rate hike in as many months. The bank said its Monetary Policy Committee “decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible.” Erdogan had long pressured the bank into lowering interest rates but reversed course after his reelection as president in May. His unorthodox policies were blamed for skyrocketing inflation that has eroded households’ purchasing power.