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

Peple walk next to an exchange currency shop in Istanbul, Turkey, as the country’s central bank hiked its key interest rate (Khalil Hamra/AP)

Turkey’s central bank hiked its key interest rate by 2.5 percentage points on Thursday as part of its efforts to combat high inflation that has left many households struggling to afford rent and essential items.

The bank’s Monetary Policy Committee raised its benchmark rate to 42.5%, delivering its seventh interest rate hike in a row to tame inflation, which rose to 61.98% last month.