x

Economy

Turkey’s Central Bank Ends String of Interest Rate Cuts

January 20, 2022

ANKARA, Turkey — Turkey’s central bank kept a key interest rate unchanged on Thursday, halting a string of rate cuts that triggered a currency crisis and sent consumer prices skyrocketing.

The bank’s Monetary Policy Committee said it decided to keep its policy rate “constant” at 14%, putting on hold a rate-cutting policy that has reduced borrowing costs by 5 percentage points since September despite soaring inflation. By contrast, many other central banks have increased rates to control surging prices.

Turkish President Recep Tayyip Erdogan insists on lowering borrowing costs to boost growth. He has long argued that high interest rates cause inflation, even though economists say raising them is the way to tame soaring prices.

Erdogan has turned to unconventional measures to halt the depreciation of the Turkish lira instead of raising interest rates. The measures include a program that encourages people to keep their savings in lira through guarantees to compensate losses from the decline of the Turkish currency. Economists warn the system could put an extra burden on the treasury.

The lira, which lost around 45% of its value against the dollar last year, strengthened slightly against the U.S. currency following Thursday’s interest rate decision.

Inflation in Turkey surged 36% last month — reaching a 19-year high and leaving many in the country of nearly 84 million struggling to buy food and other basic goods.

 

RELATED

ATHENS - "When I think about the Mediterranean, I think about a region with vast potential and opportunities, but also challenges that should be commonly addressed," Greek Foreign Minister Nikos Dendias said on Monday on the occasion of the Day of the Mediterranean.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

NYPD Οfficers, Βystander Save Man who Fell on Subway Tracks (Video)

NEW YORK — Two New York City police officers and a bystander raced to save a man who fell on the tracks at a Manhattan subway station, plucking him out of the way of an oncoming train in a daring rescue captured by an officer's body camera.

MILWAUKEE — Grayson Allen's sizzling start for Milwaukee meant the Dallas Mavericks couldn't stop their recent cold spell.

DOHA, Qatar — Argentina's 2-0 win over Mexico was the most-watched Spanish-language World Cup group stage broadcast in U.

NEW YORK — Kevin Durant scored 31 points, Seth Curry added a season-high 29 off the bench and the Brooklyn Nets beat the Portland Trail Blazers 111-94 on Sunday.

LOS ANGELES — Claude Giroux scored on a breakaway 20 seconds into overtime, Brady Tkachuk had a goal and an assist and the Ottawa Senators beat the Los Angeles Kings 3-2 on Sunday night.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.