The Turkish central bank did not touch its key interest rate at the end of the year after four cuts in a row.

It remains unchanged at 9.0 percent, as the monetary authorities announced on Thursday.

It is "crucially important" that monetary policy continues to support the economy with cheap money.

Thanks to the measures it has taken, inflation is now expected to fall.

The Federal Reserve had earlier cut interest rates by 5.0 percentage points in four months citing an economic slowdown, while central banks around the world are moving in the opposite direction on inflation.

inflation of 84 percent

The upward trend in prices in Turkey has weakened only slightly recently.

Inflation fell to 84.4 percent in November after peaking at 85.5 percent in October.

Experts believe that the value could fall to around 65 to 70 percent in the month that is ending - mainly due to a base effect, since prices were already significantly higher at the end of 2021.

The high inflation is eroding the purchasing power of the Turks.

According to President Recep Tayyip Erdogan, the monthly minimum wage should therefore rise noticeably to 8,500 lira (around 429 euros) in 2023.

This is an increase of a good 50 percent compared to July and 94 percent compared to January 2022.

Weak lira fuels price hike

The central bank's course is causing economists to shake their heads.

The vast majority of experts recommend combating high inflation with higher interest rates, as the US Federal Reserve and the European Central Bank (ECB) are trying to do.

Argentina, where the inflation rate is also more than 80 percent, has now set the key interest rate at 75 percent.

Higher interest rates could support Turkey's national currency, the lira, which has lost more than 44 percent in value in the past year alone, and by about 30 percent again this year.

That does boost exports because Turkish goods are becoming more price-competitive on world markets.

At the same time, this fuels inflation further, as imports become more expensive as a result.