People carry goods in Eminonu trade neighbourhood in Istanbul, Turkey, Wednesday, March 20, 2024. Turkey’s central bank raised its key interest rate by 5 percentage points on Thursday, resuming a policy of rate hikes aimed at combating soaring inflation that is causing households severe economic pain. People buy goods and food at a street market in Istanbul, Turkey, Tuesday, March 19, 2024.
The bank said it had decided to raise the benchmark rate “in response to the deterioration in the inflation outlook.” Annual consumer price inflation rose to 67% in February, coming in above expectations. Surging prices have left many families struggling to afford food, rent and utilities. Under the new team, the central bank had raised the benchmark interest rate from 8.5% in June to 45% in January before pausing the rate hikes last month.