The Central Bank of the Republic of Turkey (CBRT) raised the policy rate by 500 basis points to 50 percent as a result of the Monetary Policy Committee (MPC) meeting held today. Former Chief Economist Hakan Kara made evaluations regarding the interest rate hike via his X account.
Kara linked the decision to raise interest rates to the increase in foreign exchange and provided an assessment of the last 10 years.
Kara's post is as follows:
"All significant interest rate hikes made in the last 10 years came after control was lost in the foreign exchange market: January 2014, June 2018, September 2018, November 2020, post-election May 2023, and finally March 2024"
Son 10 yılda yapılan bütün ciddi faiz artırımları döviz piyasasında kontrolün kaybedilmesinden sonra geldi: Ocak 2014, Haziran 2018, Eylül 2018, Kasım 2020, Mayıs 2023 seçim sonrası ve nihayet Mart 2024.
— Hakan Kara (@ali_hakan_kara) March 21, 2024
News Source: 12punto
