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300 basis point cut from the Central Bank: İnan Mutlu criticizes lack of direction in the economy

While the Central Bank's 300 basis point interest rate cut has caused surprise in the market, economist İnan Mutlu criticized the economic management, stating, "These steps are aimless and intended only to save the day." Experts point out why inflation is not falling despite the interest rate cuts.

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The Central Bank of the Republic of Turkey (TCMB) has cut its policy rate by 300 basis points, lowering it from 46 percent to 43 percent. While the decision came as a surprise to the markets, it drew a notable assessment from economist İnan Mutlu.

Reminding that Turkey has had the second-highest policy rate in the world since May 2024, Mutlu stated, "Despite this, while inflation was at 38 percent two years ago, it is at the 35 percent level today. In other words, despite the aggressiveness in interest rate policy, there is no meaningful gain."

Arguing that there is no solid economic program behind the decisions taken, Mutlu said, "Every interest rate step becomes new proof that there is no functioning program in place. It gives the impression of aimless moves intended to save the day."


According to experts, the fact that inflation is not falling despite the interest rate cut shows that the economic management is facing a crisis of confidence. Market actors are now closely following the Central Bank's next steps.