Economists say it is inevitable Interest rates In order to stop the currency drain, he says Erdogan It advocates lower rates to lower borrowing costs and ensure economic growth.
For the third month, the MPC kept the interest rate at 8.25 percent, however Turkish authorities You may have to raise the rate as inflation rises and the lira weakens.
The Turkish financial officials confirmed that they will continue with the liquidity measures, and have also determined the value of cash that commercial lending institutions must leave aside as a reserve.
After announcing that interest rates would remain unchanged, the Lira retreated and lost the slight gains it had achieved against Dollar.
Erdogan’s vision was adopted again this month, as the lira became the third-worst performer in Emerging marketsAfter it lost 19 percent of its value against the dollar.
Meanwhile, the level of inflation exceeded 10 percent for nine months, and last July, it was 3 percent higher compared to the expectations of the Turkish central bank, which was betting at 8.9 percent at the end of 2020.
Hakan Kara, a former economist at the Turkish central bank, said in a press statement that inflation will continue its high trend, which means the urgent need for high interest rates in order to support the lira.
The financial analyst stressed the need for the Turkish Central Bank to initiate real interest rates so that he can convince domestic and foreign investors that he is serious in dealing with The inflation crisisThis requires raising the interest rate to 11 and 12 percent.
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According to the American “Bloomberg” network, this decision is presented Turkish Lira For more retreat, as he seeks Turkish Central Bank Striving to find a solution to the currency crisis, which is witnessing an unprecedented decline since 2018.
Economists say it is inevitable Interest rates In order to stop the currency drain, he says Erdogan It advocates lower rates to lower borrowing costs and ensure economic growth.
For the third month, the MPC kept the interest rate at 8.25 percent, however Turkish authorities You may have to raise the rate as inflation rises and the lira weakens.
The Turkish financial officials confirmed that they will continue with the liquidity measures, and have also determined the value of cash that commercial lending institutions must leave aside as a reserve.
After announcing that interest rates would remain unchanged, the Lira retreated and lost the slight gains it had achieved against Dollar.
Erdogan’s vision was adopted again this month, as the lira became the third-worst performer in Emerging marketsAfter it lost 19 percent of its value against the dollar.
Meanwhile, the level of inflation exceeded 10 percent for nine months, and last July, it was 3 percent higher compared to the expectations of the Turkish central bank, which was betting at 8.9 percent at the end of 2020.
Hakan Kara, a former economist at the Turkish central bank, said in a press statement that inflation will continue its high trend, which means the urgent need for high interest rates in order to support the lira.
The financial analyst stressed the need for the Turkish Central Bank to initiate real interest rates so that he can convince domestic and foreign investors that he is serious in dealing with The inflation crisisThis requires raising the interest rate to 11 and 12 percent.
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