Turkey is attempting to curb its climbing inflation rates by furthering their tightening monetary policies. The central bank told lenders to put portions of their lira reserves in blocked accounts to reduce lending. In addition to this, they increased loan rates as well as decreased the sizes of loan limits on some banks. After the news of this, bank stocks in Turkey dipped. Consumer price inflation in February was 67.07% leading to this tightening decisions. Local elections are in March as well which is putting more pressure on the government officials.
https://www.cnbc.com/2024/03/15/turkey-opts-for-new-tightening-strategy-after-signaling-pause-to-hikes.html
2 comments:
It’s quite interesting to see how each country is managing its monetary policy. I wonder if the coming up elections in most countries, give it a more significant pressure than what we initially thought.
I wonder how this problem would be solved if elections were not coming up. Do you think that this problem would be approached differently?
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