The Central Bank of Turkey has raised its key interest rate from 42.5% to 46% per annum, according to a statement from the regulator.
The move came as a surprise to many economists, especially after the central bank had cut rates three times in recent months. However, analysts at Goldman Sachs had predicted an increase.
The bank noted that underlying inflation declined in March, though a slight uptick in prices is expected in April.
«Inflation expectations and pricing behaviour continue to pose risks to the disinflation process,» the Central Bank said.
In addition to raising the benchmark rate, the bank also increased the overnight deposit rate to 44.5%.
