Central Bank keeps interest rate steady at 14 percent, abandons “current account surplus” model

The Central Bank’s Monetary Policy Board kept the interest rate steady at 14 percent. The current account surplus expectation for 2022, which was contained in the previous decision texts, was not used in the last text. The Central Bank had already cut its policy rate by 500 basis points to as low as 14 percent by December.

President Erdogan had previously expressed and insisted that the interest rate would be reduced further. But it was seen that it would not be possible to manage and shape the financial markets by via instructions to contradict global rules of economics.