The Turkish Central Bank keeps the interest rate at 14%.. Erdogan: We will break the shackles of interest, exchange rate and inflation

The Central Bank of Turkey announced today, Thursday, that it will fix the interest rate at 14%.

This came in a statement following the meeting of the Monetary Policy Committee of the Central Bank of Turkey headed by the Governor of the Bank, Shihab Cavusoglu, in the capital, Ankara.

The statement stated that the recent rise in inflation is affected by pricing away from economic fundamentals and the global increase in energy, agricultural and food prices, in addition to demand-driven factors such as disruptions in supply operations.

He stated that the process of reducing inflation is expected to start with the disappearance of its main effects, in addition to the continuous steps taken firmly to achieve sustainable price stability and financial stability.

The statement stressed the importance of improving the current account balance in price stability, adding that "long-term investment loans in Turkish lira will play an important role in achieving this goal."

He stressed that the Central Bank will firmly continue to use all the tools available to it until strong indicators appear indicating a permanent decline in inflation and the 5% target is achieved in the medium term, in line with the main objective of price stability.

On January 20, the Turkish Central Bank fixed the interest rate at 14%.

exchange rate stability

Meanwhile, Turkish President Recep Tayyip Erdogan said that the debate over interest rates has decreased significantly, and that the exchange rate has stabilized, indicating that it is time to reduce inflation to the single digits again.

"We will break the shackles of interest, exchange rate and inflation, just as we got rid of other restrictions that chained our country," Erdogan said in a speech Thursday at the presidential complex in the capital, Ankara.

He pointed out that the first objective of his government's economic program is to eliminate unemployment and boost employment.

He stressed that Turkey is experiencing economically the strongest period in its history, and that the positive effects of the entire scene will be evident during the coming summer months.