Interest

FAQ About Interest

Why is the interest rate increased? Interest
2 years ago | gizem

Why is the interest rate increased?

Interest rate hikes are made when there is a deficit in the balance of payments, so that there will be an inflow of hot money from the outside, thereby relieving the domestic market. In this way, the country's currency also appreciates. When the country's currency appreciates, cost inflation and demand inflation are prevented due to the increase in the exchange rate. In short, inflation falls.