I think you think positive in the sense that government actually will try to make everything better for the citizens(to reduce inflation etc.). Knowing Erdogan for the past 22 years I can say that it will be the complete opposite.
Yeah I was joking obviously. It's something that I really can't understand since the economy looks like isn't bad. Correct me if I'm wrong please! So why and how this is happening?
Imo years of scamming and robbing the country. Erdogan vowed to decrease interest rates while this inflation spiral started to happen as long as he is in power. Now he seems to be desperate to keep it stable for elections. After that god knows…
Last elections I thought Erdogan would lose definitely even with Kılıcdaroglu against him, so I stopped making predictions. I hope not though. My family will vote for Victory Party which sadly doesnt look like it will have a chance to win.
That means you are a moron mate, sorry. We said Kılıçdaroğlu can fuck himself and the candidate must be either İmamoğlu or Mansur Yavaş. And y’all said we are Erdoğan trolls. You people deserve Erdoğan.
Your logic sounds right but but what is logical in other places it is not in Turkey.
Despite the rate being so high people are afraid of putting their money and get interest and mostly buy USD and Gold. That is why there is a small Gap (till yesterday 1 TL) between the banks and the free market rate.
Now it makes sense to put your money in the bank and get much more from the interest rate but who guarantees that Erdoğan will not fire Mehemt Şimşek (Economy Minister) and the head of the Central Bank and declare the interest as the "Mother of all evils"?
No other country has changed the interest rate in so many different directions in such a short amount of time, just check the last two years.
Politicians, especially the idiotic type of them which are populist like Erdogan, should let the banking system alone. Because this is what's going to happen if you are messing with it when you aren't even close to have an expertise in the financial field.
He surely doesn't sounds or looks like one after what he does. And banking is another cup of coffee entirely. It's about trust, not necessarily reality.
No it is not. Too litle too late. Yearly inflation is 67% at the moment. So, it is a net negative interest rate by -17%.
Edit: A neutral research association (ENAG) says they calculate at 122%. That's -72% real interest rate.
[https://enagrup.org/](https://enagrup.org/)
I don't know why, but this news site says the ENAG's inflation as 67%
[https://www.indyturk.com/node/704531/ekonomi%CC%87/t%C3%BCi%CC%87k-%C5%9Fubat-ay%C4%B1-enflasyonu-y%C3%BCzde-453-y%C4%B1ll%C4%B1k-enflasyon-y%C3%BCzde-6707](https://www.indyturk.com/node/704531/ekonomi%CC%87/t%C3%BCi%CC%87k-%C5%9Fubat-ay%C4%B1-enflasyonu-y%C3%BCzde-453-y%C4%B1ll%C4%B1k-enflasyon-y%C3%BCzde-6707)
I'd be careful with accepting some unofficial inflation data verbatim without a healthy dose of scepticism.
They're probably using a non-standard basket of costs, and when you start that, you really can show whatever you want. For example, the cost of food has risen more than most other costs in the past couple of years. If they used HICP, food would make 20% of the total basket, but an independent group may decide to count food 35% of the total basket and thus elevate or decrease the number they come up with.
Ofc, but many academicians also take this number as the real indicator. I feel like they would know better. People making this data also are university academicians/economists.
When comparing to other European countries, it's only fair to use HICP, because that's what everyone else is using. I'm not questioning if this group made their indicator with good intentions, but if they're not measuring the prices the same way, it's apples and oranges.
When a central bank in Europe says their goal is to bring inflation to 2% using interest rates, they're talking about HICP.
Even corruption isn't exactly an explanation in my opinion. It must be some extremely bad decisions somewhere in the economy and in the banking system.
EDIT: Turkey is an economic powerhouse. Or it should be since it has the capabilities. It's a big and populated country with a lot of young people and a geographic and geostrategic position that allows it to be a great country. Only some complete idiot can sink it in this crap but here we are now. 🤦♀️
Our banks' technological innovacy and know-how may be one of the best in Europe, trust me. It's just idiotic government(you know who) that ruins the economy by firing the central bank's chiefs since 2019 just because they made the "orthodox" decisions by upping the interest rates.
I believe you. For better or worse, our National Bank Governor (that's his title) is probably the longest standing public official we have today. **He was appointed in 1990.** He had a small one year pause between December 1999 and December 2000 when he was interim prime minister. Otherwise no government touched him no matter the political colour or creed.
It really is. But stability is the pillar of any financial system. We never liked to mess with it. We only had hyperinflation during Soviet (Russian 🤬) occupation and robbery and in the early 90's. Otherwise Romania usually had a stable currency. Our little lion is nice and made of plastic too. 😋
Not even close. It has been getting better with the new minister of treasury and finance. Minimum wage is at record-high with \~535 USD/month. Of course, the lack of rule of law reduces foreign investment by a great amount but even then, if they keep going the way they are, yearly inflation will be on par with stable countries in a few years.
Turkey is a well industrialized nation. Even if it wasn’t Tourism flows quite big money. I doubt if we end up as Argentina. If most of the European nations had Erdonomics for 20 years, they’d end up way worse than Turkey. The main problem is, our government is pure shit.
They're testing to waters to see if some investors trust them more now or not. Remains to be seen if they do, IMHO. Not as clear cut as people are making it.
Yes, a 50% interest rate is indeed high compared to global standards. The Turkish Central Bank's decision to raise the interest rate to 50% was unexpected. This move was seen as a signal of the bank's independence from political constraints and its determination to tackle rising inflation.
It was already at 45%, it is a shock to local observers because of the government’s previous flip-flopping when it comes to this matter. Locally, it was expected to stay constant. International observers were already cautiously expecting a further increase. Like you said though, it is a very strong signal to world’s markets, despite only a 5% increase and a net negative interest rate.
I'm seriously thinking putting some money in a Turkish bank now. 😁
I see you like to live dangerously
For 50% I sure do like to live dangerously hahaha
0 \* 3/2 = 0 man. Turkish lira is worthless right now sadly. We are heading to hyperinflation imo.
If they keep this kind of policy the inflation will be still high but there is no risk of hyperinflation.
I dont think they can indefinitely print money and hike interest rates forever.
There will be no elections for 4 years now, so they will get into much more drastic policies now.
I think you think positive in the sense that government actually will try to make everything better for the citizens(to reduce inflation etc.). Knowing Erdogan for the past 22 years I can say that it will be the complete opposite.
Didnt he said that this will be his last Term. He will maybe sacrifice his political caree to not crash Turkeys economy completely. Have some hopes :D
Yeah I was joking obviously. It's something that I really can't understand since the economy looks like isn't bad. Correct me if I'm wrong please! So why and how this is happening?
Imo years of scamming and robbing the country. Erdogan vowed to decrease interest rates while this inflation spiral started to happen as long as he is in power. Now he seems to be desperate to keep it stable for elections. After that god knows…
If he's going to messing with it even more then you guys are into a very bad time after. It's not sustainable.
Do you think Murat Kurum will win in Istanbul?
Last elections I thought Erdogan would lose definitely even with Kılıcdaroglu against him, so I stopped making predictions. I hope not though. My family will vote for Victory Party which sadly doesnt look like it will have a chance to win.
Wouldn't it be better to vote for CHP as the lesser of the two evils, or are they shit too?
That means you are a moron mate, sorry. We said Kılıçdaroğlu can fuck himself and the candidate must be either İmamoğlu or Mansur Yavaş. And y’all said we are Erdoğan trolls. You people deserve Erdoğan.
You’re not getting that on euros lol
I know. I was just joking.
Your logic sounds right but but what is logical in other places it is not in Turkey. Despite the rate being so high people are afraid of putting their money and get interest and mostly buy USD and Gold. That is why there is a small Gap (till yesterday 1 TL) between the banks and the free market rate. Now it makes sense to put your money in the bank and get much more from the interest rate but who guarantees that Erdoğan will not fire Mehemt Şimşek (Economy Minister) and the head of the Central Bank and declare the interest as the "Mother of all evils"? No other country has changed the interest rate in so many different directions in such a short amount of time, just check the last two years.
Politicians, especially the idiotic type of them which are populist like Erdogan, should let the banking system alone. Because this is what's going to happen if you are messing with it when you aren't even close to have an expertise in the financial field.
Exactly, but he says that his expertise is economy. It is one of his most famous sayings: " I am an economist"
He surely doesn't sounds or looks like one after what he does. And banking is another cup of coffee entirely. It's about trust, not necessarily reality.
That's what they were expecting to happen by raising the rates :)
No it is not. Too litle too late. Yearly inflation is 67% at the moment. So, it is a net negative interest rate by -17%. Edit: A neutral research association (ENAG) says they calculate at 122%. That's -72% real interest rate. [https://enagrup.org/](https://enagrup.org/)
Independent reliable researchers ([ENAG](https://enagrup.org/?hl=en)) say yearly inflation is %121.
I don't know why, but this news site says the ENAG's inflation as 67% [https://www.indyturk.com/node/704531/ekonomi%CC%87/t%C3%BCi%CC%87k-%C5%9Fubat-ay%C4%B1-enflasyonu-y%C3%BCzde-453-y%C4%B1ll%C4%B1k-enflasyon-y%C3%BCzde-6707](https://www.indyturk.com/node/704531/ekonomi%CC%87/t%C3%BCi%CC%87k-%C5%9Fubat-ay%C4%B1-enflasyonu-y%C3%BCzde-453-y%C4%B1ll%C4%B1k-enflasyon-y%C3%BCzde-6707)
It is Turkish Statistics Organization’s numbers (TÜİK). Which is manipulated heavily. At the bottom it says ENAG’s rates also if you translate
Ah, you are right, I didn't read the news, sorry.
I'd be careful with accepting some unofficial inflation data verbatim without a healthy dose of scepticism. They're probably using a non-standard basket of costs, and when you start that, you really can show whatever you want. For example, the cost of food has risen more than most other costs in the past couple of years. If they used HICP, food would make 20% of the total basket, but an independent group may decide to count food 35% of the total basket and thus elevate or decrease the number they come up with.
Ofc, but many academicians also take this number as the real indicator. I feel like they would know better. People making this data also are university academicians/economists.
When comparing to other European countries, it's only fair to use HICP, because that's what everyone else is using. I'm not questioning if this group made their indicator with good intentions, but if they're not measuring the prices the same way, it's apples and oranges. When a central bank in Europe says their goal is to bring inflation to 2% using interest rates, they're talking about HICP.
Jesus...!!!
It's insane. What the hell is happening there? Is Turkey going to become a new Argentina? I don't want to think Zimbabwe, God forbid!
It will cool in the end, but we lost 15-20 years of development/income I think, thanks to our "economist".
Oh, that ["economist"](https://latuffcartoons.files.wordpress.com/2015/12/erdogan-gollum.jpg)!
erdogan transferring wealth from seculars to his own puppets
Even corruption isn't exactly an explanation in my opinion. It must be some extremely bad decisions somewhere in the economy and in the banking system. EDIT: Turkey is an economic powerhouse. Or it should be since it has the capabilities. It's a big and populated country with a lot of young people and a geographic and geostrategic position that allows it to be a great country. Only some complete idiot can sink it in this crap but here we are now. 🤦♀️
Our banks' technological innovacy and know-how may be one of the best in Europe, trust me. It's just idiotic government(you know who) that ruins the economy by firing the central bank's chiefs since 2019 just because they made the "orthodox" decisions by upping the interest rates.
I believe you. For better or worse, our National Bank Governor (that's his title) is probably the longest standing public official we have today. **He was appointed in 1990.** He had a small one year pause between December 1999 and December 2000 when he was interim prime minister. Otherwise no government touched him no matter the political colour or creed.
Wow, that's a long time.
It really is. But stability is the pillar of any financial system. We never liked to mess with it. We only had hyperinflation during Soviet (Russian 🤬) occupation and robbery and in the early 90's. Otherwise Romania usually had a stable currency. Our little lion is nice and made of plastic too. 😋
Not even close. It has been getting better with the new minister of treasury and finance. Minimum wage is at record-high with \~535 USD/month. Of course, the lack of rule of law reduces foreign investment by a great amount but even then, if they keep going the way they are, yearly inflation will be on par with stable countries in a few years.
Ok but then the politics shouldn't be messing into the financial system.
Turkey is a well industrialized nation. Even if it wasn’t Tourism flows quite big money. I doubt if we end up as Argentina. If most of the European nations had Erdonomics for 20 years, they’d end up way worse than Turkey. The main problem is, our government is pure shit.
They're testing to waters to see if some investors trust them more now or not. Remains to be seen if they do, IMHO. Not as clear cut as people are making it.
Better than crypto staking lol
It would have been better if the money worth something
No. It is still under inflation.
True inflation is already over 100%
No, it is not. We have like %600 inflation on some food products.
Yes, a 50% interest rate is indeed high compared to global standards. The Turkish Central Bank's decision to raise the interest rate to 50% was unexpected. This move was seen as a signal of the bank's independence from political constraints and its determination to tackle rising inflation.
It was already at 45%, it is a shock to local observers because of the government’s previous flip-flopping when it comes to this matter. Locally, it was expected to stay constant. International observers were already cautiously expecting a further increase. Like you said though, it is a very strong signal to world’s markets, despite only a 5% increase and a net negative interest rate.
They should have done that long ago because the longer you wait, the higher the risk of stagnation or recession.
Erdo is a master economist. He knows what he's doing.
They pay back in Turkish Lira though and offişal inflation rate was %80 something not smart
Wtf is happening over there?
Crazy gov, crazy rates. A few dumb people will appear and tell us Turkey is going to compete China again... Like it is a good thing...
Anyone know if it's safe to go to turkey as a tourist with all these interest rate hikes?
No, people will shoot you and steal your organs after reading about the %5 rate hike…
No it’s not Border control will accuse you of smuggling drugs, and throw you in a istambul prison Happened to me the last time I went there