Interest rate

The difference of opinion about Turkey's economic policies between the president and the government - and also within the government itself -  is deepening. 

After President Recep Tayyip Erdo?an?s statement last week demanding interest rate cuts, it was observed that the difference of opinion was not limited to monetary policies, but also spread to several main areas.

The Turkish Central Bank should immediately cut interest rates, Economy Minister Nihat Zeybekci said on Jan. 13, citing the country's inflation target of 5 percent this year.

A vocal critic of the Central Bank's policies, Zeybekci told broadcaster A Haber in an interview that rates could be cut to as low as 6 percent. The bank's one-week repo rate currently stands at 8.25 percent.

The Turkish economy has been under pressure for the last years due to several foreign and domestic factors and the latest growth and unemployment figures actually show how worsening the economy is The U.S.

An eventual interest rate hike by the U.S. Federal Reserve could threaten Turkish economic growth, a Moody’s analyst said Nov. 26.

The Turkish Central Bank kept interest rates on hold Nov. 20 and said it would keep monetary policy tight until the inflation outlook improves significantly.

The Central Bank is battling to rein in inflation even as the economy slows and conflict rages in neighboring countries.

The National Bank of Romania's (BNR) Board decided on Tuesday to cut the the monetary policy rate to 2.75 percent per annum from 3 percent starting Nov. 5, 2014, the Central Bank said in a release.

Prime Minister Ahmet Davutoğlu has said he "sent a message" requesting lower interest rates to Central Bank Governor Erdem Başçı during their talks on Oct. 24, adding that the Central Bank will give him a detailed briefing in November before attending the G-20 Summit.

As widely expected, the Central Bank kept its policy rates constant at its Oct. 23 rates meeting.

Analysts interpreted the move as proof of its tight stance, but I’d argue that the Bank was prepping for an early rate cut with its other actions this week.

In August the base interest rate was 0.04% which is an increase of 0.02% on an annual basis, according to Bulgarian National Bank latest statistics.

Compared with July 2014 it grew by 0.01 percentage points.

The Central Bank convenes to decide on interest rates Sept. 25, but it is not expected to make any changes as it tries to balance combating high inflation with political pressure for lower rates