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The bank announced the decision in a statement after the bank's Monetary Policy Committee (MPC) meeting on Sept. 13.
"The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement. Inflation expectations, pricing behavior, lagged impact of recent monetary policy decisions, contribution of fiscal policy to rebalancing process, and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered," it said.
A hike from the previous level of 17.75 percent was widely expected, but there were varied expectations about the new interest rate.
The Turkish lira steeply gained ground against the U.S. dollar after the decision, hitting the lowest level in two weeks with 6.01.

President Recep Tayyip Erdoğan, a staunch defender of lower interest rates, has repeatedly rebuked policy makers at the Central Bank for keeping the interest rates high.
Erdoğan stated hours before the Central Bank meeting on Sept. 13 that his "sensitivity about the interest rate is the same" while stressing that the bank "is independent and it makes its own decisions."
The dollar/lira exchange rate had climbed back to 6.43 before the Central Bank meeting on Sept. 13.
On Sept. 3, the Central Bank had announced that it will continue to use all available instruments in pursuit of the price stability objective.
According to the country’s statistical authority TÜİK, Turkey’s annual inflation was 17.90 percent in August, up from July’s figure of 15.85 percent.

From Business Insider:
The lira is going wild after the Turkish central bank defied Erdogan and hiked interest rates
Turkey's central bank raised the interest rate from 17.75% to 24% on Thursday, beating market forecasts.
Earlier in the day, Turkish President Erdogan stoked fears that the central bank's independence could be under threat by calling for low interest rates.
The lira is surging against the dollar as a result, with a swing of 4% from negative to positive

No doubt Erdogan will not like people going against him i expect he will do something maybe heads will roll

artistabroad wrote:From Business Insider:
The lira is going wild after the Turkish central bank defied Erdogan and hiked interest rates
Turkey's central bank raised the interest rate from 17.75% to 24% on Thursday, beating market forecasts.
Earlier in the day, Turkish President Erdogan stoked fears that the central bank's independence could be under threat by calling for low interest rates.
The lira is surging against the dollar as a result, with a swing of 4% from negative to positive

The interest rate, higher than expected has done little to strengthen the lire. Might be a thought for Erdogan to keep his mouth shut or go all in and put his wife in charge of the central bank.

He should keep his nose out of finance ...far too much power

While Treasury and Finance Minister Berat Albayrak described the bank’s decision as evidence of independence, Erdoğan on Sept. 14 continued his criticism of the Bank missing inflation targets.

“We will see the result of the Central Bank’s independence. This is my personal phase of patience. This patience has a limit,” the Turkish president said.

He also repeated his warning against “opportunist” tradesmen about unfairly raising their prices amid currency fluctuations.

He seems happy to bring the country to its knees and back to the dark ages,

For those with Lira bank a/c's it maybe time to visit your bank and ask for an interest rate increase???

Compass

Garanti are already showing the higher rates.... up to 20% on some investments.

Anyone know if Creditwest have upped their rate sor are they waiting for customers to ask first

with a time deposit you are locked in are you not.

However I suppose you could always threaten just to remove everything?

It seems hardly worth locking your money up for a year for 20% interest when it devalues overnight by 30% or 40% against the Pound...

Might as well put your Sterling in a deposit account and earn 3.5% or more, and just change some into TL when you need it.

Lots of talk now about putting prudent fiscal policies in place and cutting back on public spending as well as many other things, maybe the penny has dropped and they have seen what happened to Spain Ireland Grecce etc.... Could be a long road back for them,

You don't have to tie it up for a year, there are different terms and types of accounts, e accounts give the highest, you can invest for just one month, 32 days 42 days, 3 months, etc., depending on what you want.

Some Time Deposit accounts allow you to make a withdrawal every month on the maturity date and for two days after that without loss of interest

From want i have read it seems inevitable that turkey will need something like a £50 billion bailout wiithin the next year . Who provides that bailout isnyet to be seen the imf? China? Russia and qatar?

Reyntj wrote:From want i have read it seems inevitable that turkey will need something like a £50 billion bailout wiithin the next year . Who provides that bailout isnyet to be seen the imf? China? Russia and qatar?

Unless they get some confidence in the lire back a £50 billion bailout would get swallowed up in weeks.


Main thing is for Erdogan to be quiet

If you split up your capital into a dozen or so 'e-accounts' then if you do have to 'break' one (e.g. close it or withdraw from it before its maturity date) you only lose the interest on that particular account.

Creditwest e-accounts do allow you to do that (although the online information doesn't make that clear!), so you can juggle your 4 pounds three shillings and ninepence around to your heart's content

EJS - your last comment says it all....