CBT ends negative course in financial markets with new interest rate increase

Some experts comment that the Central Bank of Turkey (CBT) has literally declared that due course will be followed as long as there is high inflation and it will stick to the decision of interest rate increase, despite difficulties caused by the epidemic, with the decision it has announced.

They also say, “Certainly, monetary policy does not have a function to solve the structural problems of the economy; also a new understanding in internal and external politics as well as education and social security systems is necessary. However, we can say the bad course in financial stability and price stability in the short term is stopped has been stopped.

Experts note following; “The continuity of this situation depends on the degree to which the high level of interest will be maintained and the degree to which the money given to the market by loans will be reduced. It goes without saying pandemic conditions make it very difficult to take adequate steps in this regard. Again, at this point, it is necessary to consider likely sanctions from EU and the USA as well as the possible problems to arise from the Halkbank case to re-start in 2021.

All in all however, an important decision has been made to curb the rise in inflation.”