Turkish central bank raises interest rate to 42.5% to combat high inflation
1–10 of 55 posts
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#2Maybe they should dollarize too /s
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#3So Erdogan finally admitted his economic theories of keeping interest rates low are complete garbage. One would think that after years of causing massive damages to the Turkish economy a president should resign, being proven wrong time and time again.
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#4Does interest rate resolve in USD or turkish lira?
Isn't it a no brainer if its pays in USD to invest, as long as turkish central bank is solvent?
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#5So Erdogan finally admitted his economic theories of keeping interest rates low are complete garbage. One would think that after years of causing massive damages to the Turkish economy a president should resign, being proven wrong time and time again.
[dead]
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#6Does interest rate resolve in USD or turkish lira? Isn't it a no brainer if its pays in USD to invest, as long as turkish central bank is solvent?
turkish lira, venezuela month before a the hiper inflation and total default risk have 30% in dollars.
42% is dumb the inflation 42.5% so probably banks are making bucks here taking debt under inflation rate and lending over it, like happens in aregentina betwen 2008-2014.
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#7My layman understanding: raising interest rates is supposed to slow down businesses from growing as fast. The way businesses often respond is by downsizing the workforce. So then you get inflation that’s still high + high unemployment: not a great recipe. Does anyone with a background in economics have more insight into this?
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#8Does interest rate resolve in USD or turkish lira? Isn't it a no brainer if its pays in USD to invest, as long as turkish central bank is solvent?
[deleted]
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#9Does interest rate resolve in USD or turkish lira? Isn't it a no brainer if its pays in USD to invest, as long as turkish central bank is solvent?
The interest rate applies to lira bank accounts. It wouldn't be a good investment, the lira lost 36% to the dollar YTD.
Re: Turkish central bank raises interest rate to 42.5% to combat high inflation
#10So Erdogan finally admitted his economic theories of keeping interest rates low are complete garbage. One would think that after years of causing massive damages to the Turkish economy a president should resign, being proven wrong time and time again.
At some point you have to take the medicine. Argentina is finally doing it —after decades of kicking the can down the road.