Turkey’s central bank raised its benchmark one-week repo rate by 650 bps to 15.0%, elevating borrowing costs to their highest level since November 2021. This move symbolizes a departure from president Tayyip Erdogan’s unorthodox economic policies, particularly following the appointment of a new central bank governor and a treasury and finance minister. The MPC resolved to initiate monetary tightening to combat inflation promptly and control the deterioration in pricing behavior.