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In line with the instructions of President Recep Tayyip Erdoğan, members of the Central Bank’s Monetary Policy Committee (PPK), which has pursued a low interest rate policy in recent years, have signed a sharp increase in interest rates. interest rates after the elections. .
While the MPC raised the policy rate from 8.5 percent to 15 percent, it was the first time after a 27-month hiatus that it had increased the policy rate.
According to Erdogan’s “cause of interest, result of inflation” thesis, the policymakers who abandoned orthodox policies along with former President Şahap Kavcıoğlu and former Minister of Finance and Finance Nureddin Nebati, after the elections, Hafize Gaye Erkan and Mehmet Şimşek took over the traditional economic management. Back to politics.
The Central Bank started to cut interest rates in September 2021 and the policy rate was lowered by 5 percentage points in 4 months, from 19% to 14%. Despite the heavy loss in TL and the sharp rise in inflation during this period, the Board continued to insist on its low interest rate policy.
Under the low rate policy, the CBRT gradually lowered interest rates by 1,000 basis points until 2023. To support the recovery after the February earthquakes, the Board cut the policy rate by another 50 basis points to 8 .5 percent.
However, with the change in economic management after the elections, the policy rate was increased from 8.5 percent to 15 percent. In the pronouncement of the PPK, attention was drawn to the emphasis on the fight against inflation.
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MPK members who were in service during the period when the interest rate was lowered from 20 percent to 8.5 percent and who were on former President Kavcıoğlu’s team; Dr. Emrah Sener, Mustafa Duman, Taha Cakmak, Prof. Dr. Elif Haykır Hobikoğlu has now signed the decision to increase interest rates.
Hobikoğlu has been in this position since May 18, 2020, Şener since September 2, 2016, Duman since March 30, 2021, and Çakmak since October 13, 2021, while Erdogan’s instructions were replaced by board member determinants such as foreign markets, inflation and economic developments. It was striking that she moved with him.
The MPC is responsible for ‘taking the necessary measures to protect the value of the TL’ and ‘determining monetary policy to ensure price stability’. With its policy rate instrument, the MPC plays a fundamental role in maintaining the value of the currency and controlling inflation.
3 DIGITS SALARY
Although it is not clear, Central Bank vice presidents earn approximately 224 thousand lira gross with a salary of 134 thousand lira plus an additional fee of 89 thousand lira, while non-administrative members of the MPK and members of the Assembly receive around 107. thousand 500 liras per month.
Vice chairmen of the board earn approximately 224 thousand lira gross, with a salary of 134 thousand lira plus an additional fee of 89 thousand lira.