Turkey's high inflation has led to to raise interest rates to 45%. Inflation in Turkey is up to nearly 65% and their currency, the lira, has hit a record low compared to the U.S. dollar. Analysts say that this will be the last interest hike for a while with local elections coming up in March. Their Central Bank referred to this as the end of their monetary tightening cycle. The Anarka government had a very loose monetary policy which led to this loss in value of the lira. Through the more recent finance team, interest has been raised from 8.5 to 45% since last year. Some still believe this is not enough to combat the rate of inflation.
https://www.cnbc.com/2024/01/25/turkey-hikes-interest-rate-again-to-45percent-as-inflation-remains-stubbornly-high.html
1 comment:
It is interesting to see the different scales at which things are happening in the world, in the US we have what we consider to be very high inflation and interest rates yet it is not even close to what Turkey is experiencing. I wonder if they will be able to recover from this with their current approach or if they will need to do something more drastic.
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