Turkish economy: Timely reporting and analysis of economic developments in Turkey with all its structural problems, as one of world’s 20 biggest economies
“Interest day: Will the Central Bank make a new mistake?” This was the title of my article (in Turkish), which was published just before the decision of the Monetary Policy Committee (MPC) meeting on October 21. “I hope the policy rate will not be lowered. In that case, it will not be favorable for the
Turkish Industry and Business Association TUSIAD were known for its political-social messages to governments in the past. It was not possible to separate the economy from the law, politics, and foreign policy. However, President Tayyip Erdoğan began to perceive these messages as a threat to his power even when he was the prime minister. After
As of the early morning of October 14, the dollar rate has exceeded 9.10 liras following recent dismissals and new appointments at the Turkish Central Bank (CBRT). There have been ongoing exciting discussions on the exchange rate, such as the argument that the CBRT’s one-point interest rate cut on September 23 has not affected the
President Recep Tayyip Erdoğan dismissed two deputies of the Governor of the Turkish Central Bank (CBRT) and a member of the Monetary Policy Committee (PPK) on October 14. It was made public with a Presidential Decree published in the Official Gazette after Erdoğan met with Central Bank Governor Şahap Kavcıoğlu in the evening hours, October
Different inflation values are flying around in Turkey. If you look at the consumer price index of the Turkish Statistical Institute (Turkstat), which should be of interest to the average citizen, annual inflation is 19.6 percent. Yet, a growing number of citizens think that inflation is much higher, mainly because of increasing prices. There is
The Monetary Policy Committee (MPC) of the Turkish Central Bank (CBRT) reduced the policy rate by one percentage point to 18% on September 23. The Central Bank estimates that inflation will be much lower by the end of this year and the end of next year. This estimation, at a first look, seems to justify
We hear a lot lately: ‘But the Turkish opposition does not have an economic program to solve the economic problems.’ Leave aside the political arguments and look at the issue within the framework of the following question: ‘What kind of economic program will solve Turkey’s problems?’ Do we need a magic program, magic formula, or
Only ten days after getting appointed as the head of Turkish State Railways (TCDD), Abdülkerim Murat Atik got fired on September 14. That was the last example of Erdoğan’s one-after-other appointments in top positions of bureaucracy, mostly based on close-circle references but cause havoc within the system. Former director of the TCDD Ali İhsan Uygun
One of the most interesting – in fact, more correct to say weird – developments of the last week were the words of Şahap Kavcıoğlu, The Governor of the Turkish Central Bank (CBRT), who implied that from now they would focus on core inflation which excludes food and energy prices and alike. That would mean
A sovereign credit rating is an evaluation of a country’s creditworthiness. They can be provided at the request of a country to assess its economic and political environment. Receiving a good rating allows the countries to access funds in international markets more easily. The rating agencies’ decisions are based on subjective evaluations and can be