Monetary policy

The head of the European Central Bank, Mario Draghi stressed that the EU should push for reforms and tax cuts to boost demand and public investment in the continent. Draghi, who participated in the opening of the EU Summit underlined that the there were signs of recovery in the EU economy, but added that risks still remain.

Following the U.S. Central Bank's (Fed) postponement of rate hikes, the European Central Bank decided to continue its monetary expansion, creating a beneficial environment for developing countries such as Turkey. The expectation of the abundance of global liquidity has particularly revived bond investments in countries such as Turkey.  

?? Bank chair Ersin Özince has called Turkey's rising inflation rate "ill-gotten," adding that Turkish people need to fight to overcome the "inflation lobby," referring to debates on the "interest rate lobby" in the Turkish economy. 

Because of expectations that the U.S. Federal Reserves (Fed) will delay rate hikes and the European Central Bank will lower rates, an optimistic atmosphere is dominant in global markets. When small scale drops in the inflation rate are added to this, then we see that this atmosphere is also dominant in domestic markets.
 

A presidential system would be more suitable for Turkey to keep up with the world's rapid pace of development, Deputy Prime Minister Mehmet ?im?ek said on March 4.

Turkey's inflation rate slowed down more than forecast in February as increases in food prices lost pace, according to Turkish Statistics Institute (TÜ?K) data released on March 3. 

If the question was asked three weeks ago, the answer you might get from foreign observers of the investment environment in Turkey would be related to the possibility of a unilateral Turkish military operation into Syria.

The world's 20 top economies will use all policy tools available to lift sluggish global growth, they said on Feb. 27, despite German disquiet over fiscal and monetary stimulus.

The head of Turkey's top business organization has said the continuing rising trend in the inflation rate was not good for the country, while business representatives were "failing to understand" the Central Bank's policies in maintaining the price index. 

The Central Bank kept its benchmark interest rate unchanged at 7.5 percent again on Feb. 23, raising concerns amid a continuing rise of inflation rates. 

It also kept its overnight borrowing rate at 7.25 percent and its overnight lending rate at 10.75 percent, according to statement on the bank's website.