The Turkish Central Bank kept interest rates unchanged for the third month in a row, in line with expectations, after cutting them by half a percentage point in February.
In a widely expected decision, the Turkish Central Bank decided to fix the interest rate on the Turkish lira during the week (repo) at 8.5 percent.
And the Turkish Central Bank kept interest rates unchanged in the last March and April meetings after ending the easing cycle, which President Recep Tayyip Erdogan called for by reducing interest rates to less than 10 percent, despite the high inflation.
The Turkish economy suffers from major economic problems, most notably the decline in the lira’s prices against the dollar, which approached low historical levels at 20 liras per dollar, and high inflation, which is declining for the sixth month in a row, reaching about 44 percent last April.
However, the consumer price index rose by 2.39 percent in a month, the Turkish Statistical Institute announced. According to official figures, inflation reached 50.5 percent in March on an annual basis, after rising to 85.5 percent last October.
The economic crises were exacerbated by the negative effects of the great earthquake, which claimed thousands of lives.
The confidence index in Turkey’s economy reached its highest level since July 2018, reaching 91.1 points in May, according to statements by the Turkish Treasury Minister.
The Economic Confidence Index is a composite indicator that contains assessments and expectations of consumers and producers about the general economic situation. A rating above 100 indicates an optimistic view of the general economic situation, while a value below 100 indicates a negative assessment.
It is noteworthy that the Turkish economy grew by 5.6 percent in 2022, exceeding expectations that indicated a growth of 5.2 percent.
2023-05-25 11:03:29
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