Turkey raises its key interest rate to 17.5% as orthodox economics return after May’s election
By The Associated Press on July 20, 2023.
ISTANBUL (AP) – Turkey’s central bank raised its key interest rate to 17.5% Thursday in a further sign of commitment to orthodox economic policy following elections in May. The 2.5 percentage point hike came a month after the bank raised rates from 8.5% to 15% following more than a year of rate-cutting prompted by President Recep Tayyip Erdogan. The bank started cutting rates in late 2021 in line with Erdogan’s belief that lowering interest rates fights inflation, contradicting traditional economic theory. 4-3
