ANKARA, July 20 The Central Bank of Turkey raised the key rate from 15% to 17.5% amid the fall of the national currency — lira, and rising energy prices, experts predicted that the regulator will go for a cautious increase so as not to complicate the situation of the business sector.
Turkey's central bank said in June that it would continue to gradually tighten monetary policy until the inflation outlook improves significantly. On June 22, for the first time in more than two years, the regulator raised the key rate to 15% from 8.5%, analysts had expected it at 21%. Meanwhile, in early July, the value of the Turkish national currency — the lira — updated a historical low against the dollar and for the first time overcame the psychological mark of 27 lira per dollar.
«The Monetary Policy Committee of the Central Bank of Turkey raised the discount rate — the auction one-week repo rate — by 250 basis points to 17.50%,» the central bank said in a statement.
Experts noted that the Central Bank, unloading the markets by quickly raising interest rates, does not want to put certain sections of society and the business sector in a difficult position, so it will go for a cautious increase.
Meanwhile, gas stations in Turkey increased the cost of a liter of gasoline and diesel fuel on Sunday, including by raising VAT by the authorities, the increase was more than 20%, and since the beginning of the year — more than 60%.
On Saturday, a liter of gasoline at gas stations in large cities cost about 28 Turkish liras, and on Sunday, due to the increase in VAT and a general increase in prices, a liter costs already 34 liras (about 120 rubles). A liter of diesel fuel has risen in price from 26.3 to 32.3 liras (110 rubles). At the beginning of the year, gasoline was cheaper than diesel, a liter cost about 21 liras, and diesel — 23.5 liras. Thus, the increase in fuel prices exceeded 60%. A liter of liquefied gas also rose in price to 14 lira.
Turkish authorities have tripled the duty on customs clearance of smartphones imported from abroad to Turkey since July 10, up to $760, notary services have risen in price by one and a half times, VAT has been increased from 18% to 20%, taxes on various gambling have also been increased.