10:09 AM EDT, 04/17/2025 (MT Newswires) -- Turkey's central bank (CBT) Thursday said its Monetary Policy Committee decided to raise the policy rate -- the one-week repo auction rate -- to 46% from 42.5%, while the market consensus was for a hold.

The MPC has also increased the Central Bank overnight lending rate from 46% to 49% and the overnight borrowing rate from 41% to 44.5%.

"The decisiveness regarding tight monetary stance is strengthening the disinflation process through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations," wrote the CBT in its policy statement.

"Potential effects of the rising protectionism in global trade on the disinflation process through global economic activity, commodity prices and capital flows are closely monitored," CBT added. "Inflation expectations and pricing behavior continue to pose risks to the disinflation process."

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