Turkey’s central financial institution on Thursday raised its key rate of interest, the one-week repo price, from 45% to 50%, citing the persevering with must counter climbing inflation within the nation.

“In February, led by companies inflation, the underlying pattern of month-to-month inflation was larger than anticipated,” the financial institution’s Financial Coverage Committee mentioned in an announcement following the choice. It famous that imports of consumption items and gold slowed, which improved Turkey’s present account steadiness, however that home demand remaining “resilient.”

“Stickiness in companies inflation, inflation expectations, geopolitical dangers, and meals costs maintain inflation pressures alive,” the assertion mentioned. “The Committee intently displays the alignment of inflation expectations and pricing habits with projections, and the influence of wage will increase on inflation.”

Turkish annual shopper value inflation soared to 67% in February, fueling issues that Turkey’s central financial institution — which had indicated a month prior that its painful eight-month-long rate-hiking cycle was over — might need to return to tightening.

This breaking information story is being up to date.