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Why is the deposit interest rate in Turkey so high?
There are two main reasons for the high deposit interest rate in this country: one is the serious inflation, and the other is the high risk of debt default.
Inflation leads to rising prices. In order to stabilize prices, the Central Bank of Turkey adopted a monetary policy of raising interest rates. On the other hand, the increased risk of debt default attracts investors.
Higher interest rates must be offered to compensate for the risks. These two factors * * * promoted the increase of deposit interest rate in Turkey.
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