How did economists evaluate the Central Bank's interest rate decision? 'A correct approach, but...'

The Central Bank of the Republic of Türkiye (CBRT) Monetary Policy Committee (MPC) has announced its interest rate decision.

Although market expectations were for the interest rate to remain unchanged before the elections, the MPC decided on a 500 basis point increase. 

So, how did economists evaluate this decision? Here are those comments...

Renowned financier İris Cibre stated the following:

"USDTRY 32.19

I wish you hadn't had to sell 30 billion USD to show this courage

Finally:) Congratulations, again"

Economy writer Uğur Gürses drew attention to the expectations that the interest rate would remain stable before the elections and conveyed the following: 

"They have raised both the rate to 50% and the overnight borrowing rate to 53%...

It broke the perception that 'they cannot do it before the election'"

Economist Atilla Yeşilada's assessment is as follows:

"CBRT interest rate decision: If there is anyone in this country still expecting a devaluation, they should take some of my dear President's medicine; it fixes mental health immediately"

The assessment of economy writer and economist Mustafa Sönmez is as follows:

"They were convinced to make the interest rate hike they didn't do in time by the threat of a run on foreign currency. The foreign currency they burned was in vain

To discourage people from foreign currency, they need to increase TL deposit interest rates significantly. For this, they need to task public banks. If there is no increase in TL deposit interest rates, the step taken will remain ineffective"

Economist Mahfi Eğilmez stated that he found the decision positive but pointed out that structural reform is necessary:

"It is a correct approach for the Central Bank to increase interest rates to stop the inflation that continues to rise. However, as long as fiscal policy remains loose and structural reforms are not undertaken, the effect of the interest rate hike will remain limited."