2018-21 Turkish currency and debt crisis

Turkey's Central Bank on June 17 kept its one-week repo rate- also known as the policy rate- steady at 19%, in line with market expectations.

After the committee's sixth Monetary Policy Committee meeting this year, the bank said in a statement that "high levels of inflation expectations continue to pose risks to the pricing behavior and inflation outlook."

Treasury and Finance Minister Lütfi Elvan vowed on June 11 to continue to fight against inflation to ensure prosperity, saying that the government and the Turkish Central Bank would be in close cooperation for this purpose.

Inflation in Turkey is estimated to decline to 15.5% this year and 12% next year, the global rating agency Fitch Ratings said on June 10.

Interest rate is expected to be 17% at the end of 2021 and 13.5% at the end of 2022, according to a webinar titled "Fitch on Turkey: A Sovereign and Financial Institutions Overview".

Turkey's economy expanded 7% year-on-year in the first quarter of 2021 amid economic fallout from the coronavirus pandemic, according to the country's statistical authority on May 31. 

The country's gross domestic product (GDP) at current prices increased 29.1% to 1.4 trillion Turkish liras ($188.6 billion) in the January-March period, the Turkish Statistical Institute (TÜİK) said.