The Turkish central bank lowered its key interest rate despite inflation surging to nearly 80% and making it difficult for people to buy necessities.
Turkey’s central bank lowered its key interest rate on Thursday despite inflation surging to nearly 80% and making it difficult for people to buy what they need.

The bank announced that it had reduced the policy rate from 14% to 13% following a meeting of its monetary policy committee.

In order to boost economic growth, investment, and exports, Recep Tayyip Erdogan has pressured the bank to lower borrowing costs. Inflation has traditionally been targeted through rate increases, contrary to established economic thinking.

Food and energy prices are driving inflation to decades-high levels, prompting central banks worldwide to raise interest rates. It is still not close to Turkey’s eye-popping inflation rate of nearly 80%, as skyrocketing food, housing, and energy prices have slammed people hard.

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