Turkey keeps interest rates at 14% for the third month.

Ankara, March 17th Thursday, Turkey's Central Bank decided to keep interest rates at 14% for the third consecutive month when inflation reached 54% in February, which was not the case for 20 years. The issuing bank raised the price when it cut interest rates by 100 basis points in December and fell for the fourth consecutive time. Inflation is due to the massive depreciation of the Turkish lira, which lost 45% of its value in 2021 due to the high-interest rate policy created by the Central Bank of Turkey and promoted by Turkish President Recep Tayyip Erdogan. Erdogan, who claims that inflation is rising due to high interest rates, has changed the governor of the Central Bank four times since July 2019. According to some economists, the Russian invasion of Ukraine could have a negative impact on the economy, further increasing inflation in Turkey. Turkey, for example, is a major tourist destination for Russia and Ukraine. Finance Minister Nureddin Nebati believed that inflation would decrease due to the easing of international tensions. According to the Daily Saba newspaper, “especially after the end of the year, we will see a decline (inflation) and a rapid normalization.