The increase — a significant jump from the current 8.5% — is the first since March 2021 and comes after Erdogan appointed two internationally respected officials to head the bank and the finance ministry.
Erdogan — a self-declared “enemy” of high borrowing costs — has said he would “accept” his new finance minister’s policies but also insisted that his views have not changed. That has led to questions about whether Turkey's central bank could act independently. Economists say Erdogan’s unconventional belief has exacerbated economic turmoil, leading to currency and cost-of-living crises that have brought hardship to many households struggling to afford food, housing and other necessities. Erdogan says his economic model prioritizes growth, exports and employment.
Simsek said soon after his appointment that Turkey had no other option but to return to a “rational ground.”