18.04.2025 11:50
The Central Bank took a surprising step in April by raising the policy interest rate by 350 basis points, a move that even economists did not anticipate. It did not go unnoticed that Mehmet Şimşek, the Minister of Treasury and Finance, who has commented on every economic step taken since he took office, refrained from making any comments and maintained his silence following this decision.
In the announcement made by the Central Bank of the Republic of Turkey (TCMB) regarding interest rates, it was reported that the Board, chaired by Yaşar Fatih Karahan, decided to increase the policy interest rate by 350 basis points to 46 percent.
The announcement included statements that "The Board also raised the Central Bank's overnight lending interest rate from 46 percent to 49 percent, and the overnight borrowing interest rate from 41 percent to 44.5 percent," and noted that the main trend of inflation declined in March.
ECONOMISTS ARE ALSO SURPRISED
The Central Bank's decision to raise the policy interest rate by 350 basis points after 13 months surprised economists as well. Economists participating in the expectation surveys conducted by Anadolu Agency Finance expected the Central Bank of the Republic of Turkey to keep the policy interest rate unchanged at 42.5 percent in April.
MINISTER ŞİMŞEK'S SILENCE DRAWS ATTENTION
It was noteworthy that Minister of Treasury and Finance Mehmet Şimşek did not make any comments regarding the Central Bank's interest rate decision, which caught economists off guard. Since the first day of his term, Minister Şimşek has commented on every economic step taken, and his silence on the surprise interest rate decision was interpreted as a striking detail.
ATTENTION-GRABBING MESSAGE ON INFLATION
On the other hand, Minister Şimşek, who joined the International Economy Summit via video conference today, stated, "We are determined to implement the disinflation program. There has been a limited depreciation of the lira, but we expect the exchange rate pass-through to be low."