Public finance

Türkiye's sole focus is now on price stability, Treasury and Finance Minister Mehmet Şimşek has announced, projecting September inflation to potentially reach 40 percent.

The Central Bank's Monetary Policy Committee (MPC) will meet for a fifth time this year to decide on the one-week repo auction rate.

Economists widely expect the bank to keep the key interest rate unchanged at 50 percent on May 23 as it did at the MPC meeting in April.

The medium-term economic program is working and yielding the desired results, Finance Minister Mehmet Şimşek has said, vowing to further strengthen the program. 

"We are determined to resolve Türkiye's macroeconomic problems," Şimşek said in a speech he delivered at the Uludağ Economy Summit.

Treasury and Finance Minister Mehmet Şimşek has said they will continue to support the Central Bank's fight against inflation with fiscal policy.

The economic program aims to restore price stability and fiscal discipline while addressing macroeconomic challenges, such as reducing the current account deficit, Şimşek stressed.

Inflation in Turkey soared to a staggering 68.5% year-on-year in March, according to data released by the Turkish Statistical Institute Turkstat. This alarming surge in prices has intensified concerns over the country's economic stability.

Türkiye's Central Bank has decided to opt for lifting the key policy rate, increasing the one-week repo auction rate from 45 percent to 50 percent.

Most economists had expected the Central Bank, which held the policy rate steady last month after eight straight increases, to keep the rate unchanged at the Monetary Policy Committee (MPC) meeting on March 21.

The Central Bank has raised the monthly maximum interest rate on credit card cash withdrawals from 4.42 percent to 5 percent.

The bank's decision, which aimed at curbing credit card spending, was published in the Official Gazette on March 16 and came into force.

When a law abolishing the Workers' Housing Organization was passed in 2012 as part of a package of stringent austerity measures, Greece gave up the last tool of state intervention in the real estate market.

In February 2024, inflation in the Eurozone slowed down to 2.6% on an annual basis from 2.8% in January, but slightly more than anticipated, as preliminary data from Eurostat indicates.

Every month, the Consumer Price Index (CPI) increased by 0.6% in February compared to the previous month when it decreased by 0.4%.

As widely expected, Türkiye's Central Bank kept its policy rate unchanged at 45 percent after eight straight months of rate hikes.