In the fight against the collapse of the national currency, the central bank raises interest rates
In the fight against inflation and the decline of the local currency, the lira, the central bank of Turkey is raising interest rates sharply. After the change at the head of the central bank ordered by the head of state Recep Tayyip Erdogan, she raised the key rate on Thursday to 15.0 from the previous 10.25 percent. Experts had expected an increase of this amount.
The monetary authorities are confronted with a double-digit percentage rate of inflation, at the same time the Turkish lira has plummeted this year.
The country's badly melted currency reserves have also accelerated the decline of the lira. Turkish President Erdogan is a declared opponent of interest. Most recently, however, he had announced a U-turn in economic policy and vowed to open the country more to foreign investors. In the course of the upheaval, the former finance minister Naci Agbal was appointed head of the central bank. Erdogan also made the former Deputy Prime Minister Lütfi Elvan the new finance minister. In this role he succeeds Erdogan's son-in-law Berat Albayrak.