ANKARA (dpa-AFX) - Turkey central bank raised its key interest rates unexpectedly on Thursday citing risks to the disinflation process.
The Monetary Policy Committee, headed by Yasar Fatih Karahan, decided to raise the policy rate to 46.0 percent from 42.5 percent.
The bank had reduced the rate by 250 basis points each in December, January and March.
Today, the committee also increased the overnight lending rate to 49 percent from 46 percent and the overnight borrowing rate to 44.5 percent from 41 percent.
'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,' the bank said.
'Monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen,' the bank said.
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