Interest rates increased once again yesterday in Turkey, which is flowing money from the budget to interest and interest raters and therefore running a deficit.
The Central Bank Monetary Policy Committee increased the one-week repo auction interest rate, which is the policy rate, by 500 basis points to 50 percent.
The political power, which took over an interest rate of 44 percent when it came to power, worsened the situation over time.
The government, which claims to be against interest, made the usurer laugh again!
In the announcement made by the Central Bank regarding interest rates, it was stated that the board convened under the chairmanship of Yaşar Fatih Karahan decided to increase the policy interest rate from 45 percent to 50 percent.
In the announcement, it was stated that the Board also made changes to the operational framework and decided to determine the Central Bank's overnight borrowing and lending rates with a margin of -/+ 300 basis points compared to the one-week repo auction interest rate.
It was stated that the main trend of monthly inflation in February was higher than expected, led by services inflation.
"While imports of consumer goods and gold slowed down, contributing to the improvement in the current account balance, other indicators for the near term point to a continuing resilient course in domestic demand. The rigidity in services inflation, inflation expectations, geopolitical risks and food prices keep inflation pressures alive. The Board closely monitors the compliance of inflation expectations and pricing behavior with forecasts and the effects of wage increases on inflation," the announcement said.
THE INTEREST RATE, WHICH WAS 8.5 PERCENT BEFORE THE ELECTION, IS 50 PERCENT TODAY!
After last year's elections, with the changing economic management, the interest rate first increased from 8.5 percent to 15 percent in June, then increased continuously and finally reached 45 percent.
After Hafize Gaye Erkan was dismissed from the Central Bank and Fatih Karahan took office, the interest rate remained constant at 45 percent in February.
This month, the interest rate turned upward again.
The Central Bank Monetary Policy Committee increased the one-week repo auction interest rate, which is the policy rate, by 500 basis points to 50 percent.
THIS IS HOW THEY DEAL WITH INTEREST!
During the elections of November 3, 2002, when AKP was in power, the interest rate was 44 percent.
In the intervening 22 years, Turkey has come to an even worse point, let alone "making progress a long way" regarding interest rates.
The Central Bank increased the interest rate by 5 points to 50 percent at yesterday's Monetary Policy Committee meeting.
PRESIDENT ERDOĞAN'S WORDS
President Erdoğan's words on June 19, 2018, "Give this brother the authority, and then you will see how to deal with this interest and this and that" came to mind once again.