CB raises interest rate 0,5 points

The Central Bank yesterday continued its policy of raising interest rates which began last month after a hike-free 22 months. The bank, in the wake of hiking the overnight borrowing interest rate to 15.75 percent in May, yesterday, as expected, increased the rate a further 0.5 points. Citing unexpectedly surging oil prices, the Monetary Policy Committee, chaired by CB Governor Durmus Yalcin, decided to increase the overnight borrowing rate from 15.75 percent to 16.25 percent, and the lending rate from 19.75 percent to 20.25 percent. The committee also signaled more rate hikes could be in the offing, as needed.