![]() The tight monetary policies and interest rate hikes that have been in place in major capitalist countries are expected to have a negative impact on economic growth, employment and wages.Įrdoğan justified his decision to cut interest rates by claiming that “interest is the cause of inflation” and that interest has no place in Islam. ![]() The devaluation of the TL will further exacerbate the already high cost of living and the decline in workers’ purchasing power. This means the Turkish currency has depreciated by around 30 percent against the dollar since the election. Before the second round of the presidential elections held on May 28, the US dollar exchange rate was 19.97 TL. The Turkish Lira fell more than 5 percent on Thursday, sending 1 US dollar above 25 TL. In a statement, the Central Bank said, “Monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved.” But the rate hike was below the expectations of the financial markets. The decision representing a sharp shift in the financial policy advocated by President Recep Tayyip Erdoğan came shortly after Hafize Gaye Erkan was appointed to run the central bank. ![]() Last Thursday, the Turkish Central Bank announced its expected decision on interest rates, raising the policy rate from 8.5 percent to 15 percent. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |