# The Central Bank of Turkey cuts its policy rate despite high inflation

Date: 2021

## The fact

On 23 September 2021 the [Central Bank of the Republic of Turkey](/organizations/central-bank-of-the-republic-of-turkey) cut its one-week repo rate by 100 basis points despite inflation already in double digits, continuing an unorthodox easing [Erdoğan](/people/recep-tayyip-erdogan) had publicly demanded.

## Context

Erdoğan had fired or replaced governors who tightened. He publicly argued that high rates cause inflation. TCMB’s MPC voted; markets sold the lira. Later 2023 tightening under a new team is a neighbouring later row.

Governor replacements are neighbouring personnel Facts if separately dated. The 2023 earthquake is a different file.

The president of Turkey is head of state and, since the 2017 executive-presidency reform, head of government. The Grand [National Assembly](/organizations/national-assembly) writes statutes; the Official Gazette records decrees; courts, governors, and the armed forces implement. He does not write a European Council conclusion, an IMF programme, or a UN General Assembly resolution.

## Evidence and sources

Central Bank of the Republic of Turkey carries the official instrument or communique. Reuters records the same dated act independently.

## Significance

The path is [inflationary pressure](/drivers/inflationary-pressure) and [household purchasing power](/drivers/household-purchasing-power): a completed easing against high inflation is a price instrument.

## What is established and what is not

Established: a 23 September 2021 TCMB 100bp cut despite high inflation, independently reported.

Not established: a unique later loaf-price coefficient from that hour, or that every later 2022 print was this one meeting.

What would change the picture: a contradictory original with a different date or name, a later repeal, a court that vacated the instrument, or a measured series that can be argued, with lag and alternatives, as a consequence of this instrument rather than of later institutions.

The date is the date of this instrument, not a licence to back-date every later harm or benefit.

The MPC voted the cut. Markets priced the lira.. A later repeal, court stay, or successor order would be a different Fact with a different date. That pair identifies The Central Bank of Turkey cuts its policy rate despite high inflation, not a later speech about The Central Bank of Turkey cuts its policy rate despite high inflation.

Co-authors and later implementers named in Context remain on the file. The Central Bank of Turkey cuts its policy rate despite high inflation on 2021-09-23 is not a licence to treat every later Central Bank of the Republic of Turkey communique as this same act. If a later repeal, stay, or successor decree exists, it needs its own date and its own row. This dossier refuses to average The Central Bank of Turkey cuts its policy rate despite high inflation into a personality. The contribution described on this Person row is limited to He publicly demanded low rates and shaped TCMB personnel. The MPC voted the cut. Markets priced the lira. That limit is the alternative to treating office-holding as authorship of every later series. The Grand National Assembly, the Official Gazette, governors, courts, and foreign counterparties share specific files. Allegation is not a completed judgment. A detention is not a conviction.

## People

- Recep Tayyip Erdoğan: https://factrail.ai/people/recep-tayyip-erdogan

## Drivers

- Inflationary Pressure: https://factrail.ai/drivers/inflationary-pressure
- Household Purchasing Power: https://factrail.ai/drivers/household-purchasing-power

## Sources

- https://www.reuters.com/world/middle-east/turkey-central-bank-cuts-rate-100-bps-surprising-markets-2021-09-23/
- https://www.tcmb.gov.tr/

## Methodology

https://factrail.ai/methodology

Canonical: https://factrail.ai/facts/tr-tcmb-rate-cuts-2021