x

Economy

Turkey’s Central Bank Keeps Rate Steady amid High Inflation

ANKARA — Turkey’s central bank on Thursday kept its main interest rate unchanged for a fourth month even as surging inflation has hit a 20-year high and eroded people’s purchasing power.

In a statement following a monetary policy committee meeting, the bank said it was keeping its policy rate “constant” at 14%.

The decision was in line with President Recep Tayyip Erdogan’s opposition to high borrowing costs in a bid to boost growth, investment and exports. The Turkish leader insists that raising interest rates cause inflation — a position that contradicts established economic thinking.

Turkey’s central bank has cut rates by 5 percentage points since September despite high inflation, then has paused them since January. The series of rate cuts last year triggered a currency crisis and rising consumer prices that have been aggravated by Russia’s invasion of Ukraine and soaring energy costs.

Yearly inflation hit 61.14% in March, deepening the squeeze on households that were already struggling to purchase basic goods. The Turkish lira lost 44% of its value against the U.S. dollar last year.

In an effort to soften the blow on households, the government has implemented tax cuts on basic goods and has adjusted electricity tariffs.

In comparison, the United States, United Kingdom and the 19 countries that use the euro currency have seen decades-high levels of inflation — 8.5%, 7% and 7.5%, respectively — but are nowhere close to Turkey’s eye-watering rate. Central banks in the U.S. and U.K. have raised interest rates to combat inflation.

RELATED

ATHENS - Greece confirmed 3,190 new coronavirus infections in the last 24 hours, the National Public Health Organization (EODY) said on Saturday, bringing all confirmed infections since the pandemic began to 3,442,963 (daily change: +0.

Top Stories

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.

General News

PHILADELPHIA – The Federation of Hellenic Societies of Philadelphia and Greater Delaware Valley announced that the Evzones, the Presidential Guard of Greece will be participating in the Philadelphia Greek Independence Day Parade on March 20.

Video

Mission…To The Holy Land – A TNH Documentary by Clelia Charissis

This past Easter season, this great feast, Pascha for Greek Orthodox Christianity and Passover for Judaism, found us during Holy Week in the Holy Land, at the Gate of Worship.

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.