The central bank announced on the 20th that it will keep the policy interest rate unchanged for the first time in five months in Turkey, where rapid inflation is progressing due to the effect of continuing to reduce interest rates.
However, President Erdogan has also suggested the possibility of further rate cuts, and it is unclear whether the economy will stabilize.
In Turkey, in line with President Erdogan's intentions, the central bank lowered major policy interest rates for four consecutive months from September last year, resulting in a plunge in the currency lira and a one-year inflation rate of 36 last month. Inflation is progressing at a record level, reaching over%.
As the economic turmoil continues, Turkey's central bank announced on the 20th that it will keep its major policy rate unchanged at 14% for the first time in five months, saying it will "work on sustainable prices and financial stability."
Following the announcement, many people gathered at the exchange office in Istanbul, the largest city, to exchange currency lira at a favorable rate.
A 58-year-old man said, "I think it was a good decision to protect the country's economy. I hope Lira will be stable."
However, President Erdogan, who insists on a rate cut as an economic stimulus measure even under inflation, has suggested to the local media that there is a possibility of further rate cuts prior to this announcement, and it is unclear whether the economy will stabilize. is.