More on Interest Rates

An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender in the market. The interest rates are influenced by macroeconomic factors. In economics, a Taylor rule is a monetary-policy rule that stipulates how much the Central Bank should change the nominal interest rate in response to changes in inflation, output, or other economic conditions. In particular, the rule stipulates that for each 1% increase in inflation, the Central Bank should raise the nominal interest rate by more than one percentage point.

Interest Rates in Turkey: Overnight rates in Turkey are estimated to fall in 2013, indicating a loosened monetary policy.