Turkey's central bank raised its key interest rate, renewing its tightening cycle as one of the world's highest inflation rates rose again last month, AFP reports.
The move comes 10 days before local elections, with the country's cost of living crisis a major concern for President Recep Tayyip Erdogan and his ruling Justice and Development (AKP) party.
The central bank's Monetary Policy Committee decided to raise the key interest rate from 45% to 50%, citing a "worsening inflation outlook" in the statement.
In January, the bank announced that its then hike would be the last, as the level was sufficient to start easing the cost-of-living crisis.
However, annual inflation rose again in February, reaching 67.1%.
In February, the Bank kept its interest rate unchanged, having raised it from 8.5% to 45% since June.
The central bank said its "monetary policy stance will be tightened in the event that a significant and sustained deterioration in inflation is foreseen."
Emerging markets economist Timothy Ash said the decision to raise interest rates, contrary to expectations, was "an extremely positive move".
He said it showed that the economic team, led by Finance Minister Mehmet Shimshek, and the central bank had been given "a strong mandate to do whatever it takes to fight inflation".
"They are now proving their independence," Asch said. / BGNES
