Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
Syrian Foreign Minister Asaad Hassan Sheibani held separate talks in Ankara with Turkish Foreign Minister Hakan Fidan and National Intelligence Organization (MİT) Chief İbrahim Kalın, focusing heavily on regional security and the integration of Kurdish armed groups into Damascus’ central authority.
The central bank kept its benchmark policy rate unchanged at 37% during its Monetary Policy Committee meeting on July 23, matching market expectations. However, business leaders are increasingly complaining about high borrowing costs, tight credit restrictions, and falling industrial output.
Most market participants expect the central bank to keep the policy rate unchanged at 37% when it meets on July 23, but pressure is building for a cut and some experts are calling for a wholesale shift in monetary policy.
Teachers have begun hunger strikes in a central Ankara park after encountering violent treatment from the police during protests outside the Education Ministry.
The central bank kept its benchmark policy rate unchanged at 37% for the third consecutive meeting on June 11, matching the consensus forecast of economists. The Monetary Policy Committee also held its overnight lending rate at 40% and its borrowing rate at 35.5%. The central bank last altered its policy rate in January with a 100-basis-point cut.
In the latest episode of a legal battle between the central government and the opposition-led Istanbul municipality, a Turkish appeals court on June 4 temporarily blocked the transfer of the historic Basilica Cistern, a major tourist attraction of Istanbul, from the municipality to the Directorate General of Foundations.
Following the suspension of the Paris talks by the Damascus government, the SDF, which advocates decentralized government in Syria, increased its activity in Raqqa, Aleppo, Deir ez-Zor, and along the Turkish border after holding a conference in Hasakah with prominent Druze and Alawite figures, Turkish state-owned Anadolu News Agency reported on Sept. 5.
Central Bank Governor Fatih Karahan said interest rate cuts can only be effective when inflation is under control.
CHP Chair Özgür Özel sparked a political storm by accusing a senior AKP figure of bribing a businessperson to testify against Istanbul Mayor Ekrem İmamoğlu. The CHP leader also suggested that the AKP had used dirty tricks to push CHP Aydın Mayor Özlem Çerçioğlu to transfer to the AKP on the 24th anniversary of the ruling party. Just two hours before the AKP’s celebrations, Özel said that former AKP Central Decision and Executive Board member and lawyer Mücahit Birinci asked imprisoned businessperson Murat Kapki to pay $2 million and promised his release in return for signing a false statement.
Turkey's inflation and high cost of living show no sign of easing. A new Central Bank survey points to rising price expectations — coming just days after the bank officially revised its own forecasts upward.
Finance Minister Mehmet Şimşek warned investors to expect a worsening in the country’s current account and the central bank said it expects faster inflation as strain grows on the government’s economic plans.
The central bank kept its benchmark policy rate unchanged at 37% on April 22, meeting the expectations of most analysts. The decision comes following intensified criticism of both the bank and Finance Minister Mehmet Şimşek, 59, from the business world and media outlets close to the government.