Özgür Demirtaş: 'Interest rate hikes are not enough'

Prof. Dr. Özgür Demirtaş made assessments regarding the economy in a post on X. Commenting on the Central Bank of the Republic of Turkey's interest rate hike decision, Demirtaş said, "Turkey needs to study the Argentina example well."

Stating that interest rate hikes would not be sufficient, Demirtaş emphasized that structural reforms must also be implemented.

Demirtaş said the following in his post on his X account:

"Although Argentina constantly raised interest rates, it could not control inflation. The reason for this is that it did not implement the other structural reforms it needed to carry out alongside the interest rate hikes.

An interest rate hike is the price paid for past mistakes. It is painful. For this pain to be worth it, other structural reforms must be implemented immediately."

Turkey needs to study the Argentina example well.

Although Argentina constantly raised interest rates, it could not control inflation. The reason for this is that it did not implement the other structural reforms it needed to carry out alongside the interest rate hikes.

An interest rate hike is the price paid for past mistakes. It is painful…

— Özgür Demirtaş (@ProfDemirtas) November 26, 2023

HE HAD WARNED BEFORE

Demirtaş had also emphasized structural reforms in a video where he explained the possible scenarios that would occur with Mehmet Şimşek taking charge of the economy as Minister of Treasury and Finance.

Stating that there are things that need to be done in the short and long term, Demirtaş had said that a transition to rational policies was necessary in the short term, while structural reforms were needed in the long term.