Egypt, Turkey hold firm on interest rates
Turkish President Recep Tayyip Erdogan is adamantly opposed to raising interest rates, but some observers expected Egypt to raise rates in line with Gulf banks and the US Federal Reserve.
The central banks of Turkey and Egypt both decided yesterday to keep their interest rates unchanged.
Turkey
The Central Bank of the Republic of Turkey said they would keep their main policy rate unchanged at 14%. In its explanation, the bank actually noted several factors that are driving “high global inflation.”
“Increase in inflation is driven by rising energy costs resulting from geopolitical developments, temporary effects of pricing formations that are not supported by economic fundamentals, strong negative supply shocks caused by the rise in global energy, food and agricultural commodity prices,” they said in a press release.
