The Central Bank lowered the interest rate: While the world is going to increase interest rates, why is Turkey lowering it?

prof. Dr. Selva Demiralp | Koç University Faculty Member


Source, Getty Images

Since the beginning of the year, the central banks of nearly 90 countries have increased interest rates.

Nearly half of these countries have increased interest rates at least 75 basis points at a time, that is, about one-tenth of the inflation they have experienced.

One day after the last 75 basis points increase in interest rates by the US Federal Reserve during the week, the CBRT cut interest rates by 100 points.