President Recep Tayyip Erdogan continues to insist on low-interest rates. Erdogan told reporters on his flight back from a visit to Turkmenistan that he will never support interest rate hikes and will not compromise, according to Reuters. He also said the recent foreign exchange rate (FX) volatility was not based on economic principles and that Ankara was ready to provide the support necessary to boost investments, through state banks. “We’ll resolve the problems caused by the price surge due to FX rate volatility through investment, employment, and production,” Erdogan added. He also hasn’t budged on his unorthodox view that interest rates cause inflation, adding that he expected inflation to fall before elections scheduled for 2023.
Istanbul was hit by a fierce storm with gale-force winds yesterday. At least four people died and 19 people were injured, three of whom were seriously wounded, according to the Disaster and Emergency Management Authority (AFAD). Officials said in a statement that most of the country would be affected by strong winds and storms through today and urged people to take measures, such as staying inside, to avoid harm during the bad weather.
The Confederation of Progressive Trade Unions of Turkey (DISK), the Confederation of Turkish Trade Unions (TURK-IS), and the Confederation of Turkish Real Trade Unions (HAK-IS) will make a joint press statement, broadcast across the country, about the minimum wage at 12.00 pm. The Minimum Wage Determination Commission, consisting of five members representing employers, employees, and government representatives, will hold four meetings before the end of December to determine the minimum wage that will be effective from January 1, 2022. The first meeting of the Commission will be held on December 1.
Borsa Istanbul’s BIST 100 index rose by 1.82% to 1,808.79 as of Monday’s close.
Turkey’s Gross Domestic Product (GDP) surged by 7.4% in the third quarter, compared to the same quarter last year, according to the Turkish Statistical Institute (TurkStat).
The Services Producer Price Index (S-PPI) increased by 34.26% in October, compared to the same month last year, according to TurkStat. S-PPI rose by 3.42% on a monthly basis.
The Central Bank will release monthly monetary and banking statistics for October (2.30 pm).
The Parliament will discuss the legislative proposal for the amendment of some laws.
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Supporting exports by keeping the national currency low is possible under certain conditions. However, for each average 7.7 unit increase in FX rate, exports were raised by just one unit from January 2014-October 2021. In the same period, the currency basket surged by 254%, while the country’s total exports rose by only 33%.
Cengiz Holding’s energy subsidiary Cengiz Enerji plans to add wind energy to its Kalekoy Hybrid Power plant, which currently consists of a hydroelectric power plant and solar power plant. The project will be the world’s first triple hybrid power plant to generate electricity from three different resources when it is completed, according to Ahmet Cengiz, Board Member of Cengiz Enerji.