This step is in line with market expectations, as more than a third of employees receive the minimum wage. In addition, this indicator serves as a guideline for calculating other salaries, as well as the required amount of income for applicants for a residence permit.
Politicians expect that by the end of next year, price growth in the country will slow down to 21% compared with the current 47.1%.
The Central Bank of Turkey is due to announce its decision on interest rates this week.Most economists surveyed by Bloomberg expect a rate cut from the current 50%. This will be the first decrease since February 2023.
From May 2023 to March 2024, the Central Bank raised the base rate from 8.5% to 50% in an attempt to stop rampant inflation. The rise in prices in the country was reflected in cost of living for both locals and visitors.
According to economists' forecasts, by the end of 2025, the key interest rate in Turkey will be 29.5%.
Sources: Bloomberg, Hurriyet Daily News