Turkish central bank raises interest rate 42.5% to combat high inflation

ANKARA, Turkey (AP) — Turkey’s central bank has hiked its key interest rate by 2.5 percentage points as part of its efforts to combat high inflation that has left many households struggling to afford essential items. The bank raised its benchmark rate to 42.5% on Thursday. It was its seventh interest rate hike in a row to tame inflation which rose to 61.98% last month. The series of rate hikes came after President Recep Tayyip Erdogan reversed course and appointed a new economic team following his reelection in May. Erdogan is a longtime proponent of an unorthodox policy of cutting rates to fight inflation.