ANKARA, Turkey (AP) — Turkey’s central bank raised its key interest rate by an aggressive 7.5 percentage points on Thursday, in a new sign of a return to more traditional economic policies under President Recep Tayyip Erdogan.
The bank hiked its policy rate to 25% as it continued to backtrack from a rate-cutting course set by Erdogan, which has been blamed for inflaming a cost-of-living crisis. Many households have been left struggling to afford rent and basic goods.
Central banks around the world have been hiking rates to bring consumer prices rises under control following the COVID-19 pandemic and Russia’s war in Ukraine. The Turkish central bank, however, started cutting rates in late 2021 under pressure from Erdogan. The team includes former Merrill Lynch banker Mehmet Simsek, who returned as finance minister, a post he held until 2018, and Hafize Gaye Erkan who took over as central bank governor. The first woman to hold that position, Erkan was previously co-chief executive of the now-failed San Francisco-based First Republic Bank.
Before that, the central bank had cut its key interest rate from around 19% in 2021 to 8.5% earlier this year. Erdogan has fired three central bank governors who resisted pressure to cut rates before appointing Erkan’s predecessor in 2021.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Japan to start releasing Fukushima nuclear plant wastewater to sea as early as ThursdayJapan and TEPCO say the water must be removed to make room for the plant’s decommissioning and to prevent accidental leaks from the tanks
Read more »
Forest fire shuts down Turkey's Dardanelles Strait for maritime trafficANKARA (Reuters) - Maritime traffic from the Aegean Sea to the Sea of Marmara has been suspended due to the ongoing forest fire in the Turkish ...
Read more »
Maritime traffic at Turkey’s Dardanelles Strait suspended due to forest fireThe Dardanelles Strait, a narrow and historically significant passage connecting the Aegean Sea to the Black Sea, serves as a vital shipping route for vessels travelling between Europe and Asia
Read more »
Alouettes QB Cody Fajardo to return from injury Thursday vs. Blue BombersMontreal Alouettes quarterback Cody Fajardo is set to return from injury this week against the Winnipeg Blue Bombers, head coach Jason Maas confirmed on Tuesday.
Read more »
Alouettes QB Cody Fajardo to return from injury Thursday vs. Blue BombersMontreal Alouettes quarterback Cody Fajardo is set to return from injury this week against the Winnipeg Blue Bombers, head coach Jason Maas confirmed on Tuesday.
Read more »
Alouettes QB Cody Fajardo to return from injury Thursday vs. Blue BombersMontreal Alouettes quarterback Cody Fajardo is set to return from injury this week against the Winnipeg Blue Bombers, head coach Jason Maas confirmed on Tuesday.
Read more »