World Turkey: The central bank keeps the interest rate despite the pressure of Erdogan
Turkey: Erdogan accuses retired admirals of hinting at ‘coup’
Turkish president slams former naval officers who warned his plans for a new Istanbul canal threaten a maritime treaty.Earlier on Monday, Turkish prosecutors detained 10 retired admirals and ordered four others to turn themselves in for signing the statement supporting the 85-year-old maritime accord governing the use of the Bosphorus and Dardanelles straits on grounds they were conspiring against the constitutional order.
while Erdogan is a low rate partisan Interest, the Central Bank of Turkey nevertheless left its main interest rate unchanged, at 19%, after the first monetary policy meeting since the brutal replacement last month of its previous Governor.
The Central Bank of Turkey plays the status quo on the interest rate forehead. While the appointment of Sahap Kavcioglu in replacement of, a former Minister of Finance respected, had strengthened fears of lowering the Central Bank rate (as calls for his wishes in Despite high inflation), the main interest rate has been maintained at 19%. "The interest rate will continue to be set at a higher level than inflation in order to keep a powerful deflationary effect until the indicators announce a permanent decline of ," said The central bank in a statement.
EU chiefs make rare Turkey visit to revamp ties
The European Union's top two officials paid a rare visit to Turkish President Recep Tayyip Erdogan on Tuesday aimed at testing his avowed commitment to revamp ties. Years of disputes over a growing list of issues threatened to boil over last summer when Turkey sent warships to support an energy exploration mission in waters claimed by EU members Cyprus and Greece. Tensions cooled somewhat when Turkey withdrew the vessels and this year engaged in its first maritime talks with Greece since 2016.The bloc pulled back from its threat to sanction Turkey as a result.
The course of the Turkish book remained stable after this announcement, a majority of economists who bet on a first decision under the sign of stability under Mr. Kavcioglu. The rise in rates is one of the main instruments that make it possible to combat inflation. In Turkey, it amounted to 16.19% annually in March, according to official figures. However, President Erdogan is hostile at high interest rates he sees as a brake on growth. Classic economic theories, it even supports that raise interest rates feeds rising prices.
last month, Erdogan brutally limited Mr Agbal after he had noted the main interest rate From the central bank of 200 basis points. This decision caused a shock in the markets that resulted in a collapse of the Turkish book, which lost more than 8% of its value against the dollar since the beginning of the year.
EU and Turkey: Offers to Erdoğan
EU Commission President of the Leyen and Council President Michel, Turkey, in their visit to Ankara, a stronger economy in the economy and migration in view. It should be "reversible". © Presidential Press Office / Via Reuters Charles Michel and Ursula von der Leyen at her meeting with President Erdoğan.
The appointment of Mr. Kavcioglu, the fourth leader of the Central Bank in two years, has preoccupied the economists who see him a more malleable governor and who can answer the injunctions of the Turkish president. Last week, Mr. Erdogan expressed the wish to see the interest rates brought back to "".
Turkey: Erdogan denounces the "lies" and the "betrayal" opposition on the reserves of the central bank .
© Pixabay Turkey: Erdogan denounces the "lies" and the "betrayal" of the opposition on the reserves From the central bank "lies", "betrayal" ... while the opposition suggested that the Central Bank of Turkey had dilapidated its reserves for the benefit of certain companies close to power, the Turkish President Recep Tayyip Erdogan denies. He defended the use by the central bank of his foreign currency reserves to support the economy.