The Central Bank of Turkey decided to keep the interest rate at 8.5% at the monthly meeting of the Monetary Policy Committee.
On March 23, the Central Bank made a similar decision to leave the interest rate at 8.5% unchanged, following a decision made on February 23 to cut the interest rate by 50 basis points, from 9% to 8.5%.
The interest rate affair at the Turkish Central Bank has always been a major controversy between President Recep Tayyip Erdogan and a large number of economists in the country.
Erdogan says that the high interest rate is the cause of inflation and that the interest rate should be lowered by the Turkish Central Bank in order for inflation to come down and prices to come down.
This is an opinion that is contradicted by a large number of economists who believe that in order to reduce inflation, it is necessary to raise the interest rate, and not vice versa.
This file was one of the reasons why Erdogan changed the head of the Turkish Central Bank several times over the past three years.
Source: RT