Central bank

Central bank lowers benchmark after holding it since December – Economists expected no change, but Erdogan promised rate cuts

Türkiye's central bank on Aug. 18 lowered its main interest rate.

The United States and the European Union can avoid recession and achieve a soft landing by bringing inflation down to an acceptable level, a U.S. central bank official said on Aug. 2.

"A soft landing is feasible in the U.S. and the EA [euro area]," St Louis Federal Reserve President James Bullard during a speech at New York university.

The new tool being promoted to shield southern European countries as interest rates may rise "not need to be used if it is strong enough to persuade investors not to try it".

This is what the governor of the Bank of Greece and member of the Board of Directors of the European Central Bank, Giannis Stournaras, said in a televised interview with Bloomberg.

Eurostat's inflation divs for both the Eurozone and Greece have set new records causing a veritable shock around the continent.

In particular, inflation in the eurozone was 8.6% in June from 8.1% in May, according to the preliminary data published today by the official statistical authority of the European Union.

The picture in Greece

Finding the right monetary policy response to tackle soaring inflation is an "art," European Central Bank President Christine Lagarde has said.

"It is not a science," Lagarde said on June 29 at a panel at the ECB's annual central banking conference in Portugal.
"What we are doing there is an element of art," she said.

Türkiye's banking watchdog has announced the details of commercial loans decision revealed on June 24, while emphasizing that the decision is a measure taken to strengthen financial stability, use resources more efficiently and productively, and ensure that the credit system works effectively.

That policy also envisaged that goods and services produced in the country would become cheaper abroad because of the fall in wages. China entered its development process with a similar policy.

Turkey's Treasury and Finance Ministry said on June 10 the fight against inflation remained the top priority in its macroeconomic policy, with fiscal discipline never to be compromised.

Germany and Spain on May 30 reported another jump in inflation in May as the war in Ukraine continued to push up food and energy prices, heaping pressure on the European Central Bank to speed up interest rate rises.