Under the leadership of the new central bank chief, Hafize Gaye Erkan, the bank has been given the authority to raise interest rates significantly, from 8.5% to 40%, in an attempt to increase the cost of borrowing and slow down the rate of price increases. The central bank has stated that the pace of monetary tightening will slow down and the tightening cycle will be completed in a short period of time. It has also emphasized that interest rates will remain high for as long as necessary to ensure stable prices.

Turkey's economy experienced rapid growth during the early years of President Erdogan's leadership, but has faced challenges in recent years. The central bank's previous policy of cutting interest rates despite high inflation led to a currency crisis in 2021. As a result, the government implemented a scheme to protect lira deposits from depreciation.

Overall, the decision to raise interest rates to 40% is a significant step towards addressing Turkey's high inflation. It marks a shift in President Erdogan's stance on interest rates and reflects a recognition of the need to take action to stabilize prices. The central bank's new chief has been given the authority to implement these measures, and it is expected that the tightening cycle will be completed in the near future.

Original news source: Turkey's central bank raises interest rates to 40% (BBC)

– News Summary
Instructions: Divide the class into small groups. Give each group a copy of the article. Have them read the article and create a concise summary of the main points. Each group can then share their summary with the rest of the class.
– Opinion Poll
Instructions: Prepare a list of questions related to the article, such as "Do you agree with the decision to raise interest rates to combat inflation?" or "Do you think President Erdogan's change in stance on interest rates is a positive or negative development?" Have the students discuss their opinions in pairs or small groups, and then conduct a class poll to see the overall opinions of the students.
– Sketch It
Instructions: Choose a key event or concept from the article, such as "Turkey's high inflation" or "President Erdogan's change in stance on interest rates." Have each student draw a quick sketch representing that event or concept. Then, have the students share their sketches with a partner or in small groups and explain their drawings.
– Vocabulary Pictionary
Instructions: Select a list of vocabulary words from the article, such as "inflation," "interest rates," or "monetary tightening." Divide the class into teams. One student from each team comes to the front of the class and is given a word to draw on the board without speaking. The rest of their team must guess the word within a time limit. Repeat with different students and words.
– Pros and Cons
Instructions: Divide the class into two groups. One group will discuss the pros of raising interest rates to combat inflation, while the other group will discuss the cons. Give each group time to prepare their arguments, and then have a debate where each side presents their points. Encourage the students to use evidence from the article to support their arguments.

Turkey's ? bank has made the decision to raise its main interest rate to 40% in an effort to combat the country's high inflation. This increase, which is higher than expected, is part of a larger campaign to address the ? of soaring prices. Inflation in Turkey ? 61.36% in October and is projected to continue rising, ? at around 70 to 75% in May of next year. While central banks around the world have been raising interest rates to combat inflation, President Recep Tayyip Erdogan had previously argued against this approach, claiming that higher rates would lead to ? price increases. However, since his re-election in May, his stance has shifted. Under the leadership of the new central bank ?, Hafize Gaye ?, the bank has been given the ? to raise interest rates significantly, from 8.5% to 40%, in an attempt to increase the cost of borrowing and slow down the rate of price increases. The central bank has stated that the pace of monetary tightening will slow down and the tightening cycle will be completed in a ? period of time. It has also emphasized that interest rates will remain high for as long as necessary to ensure stable prices. Turkey's economy experienced rapid growth during the early ? of President Erdogan's leadership, but has ? challenges in recent years. The central bank's ? policy of cutting interest rates despite high inflation led to a currency crisis in 2021. As a result, the government implemented a scheme to protect lira deposits from depreciation. Overall, the decision to raise ? rates to 40% is a significant step towards addressing Turkey's high ?. It marks a shift in President Erdogan's stance on interest rates and reflects a recognition of the need to take action to stabilize ?. The central bank's new chief has been ? the authority to implement these measures, and it is expected that the tightening cycle will be completed in the near future.

1. What is inflation and why is it a concern for a country's economy?
2. How do you think raising interest rates can help combat inflation?
3. How would you feel if the prices of goods and services in your country were increasing at a rapid rate?
4. Do you agree with President Erdogan's previous stance against raising interest rates? Why or why not?
5. What do you think are the potential risks or consequences of raising interest rates to such a high level?
6. How do you think the decision to raise interest rates to 40% will impact borrowing and lending in Turkey?
7. Do you think other countries should follow Turkey's example and raise interest rates to combat inflation? Why or why not?
8. How do you think the Turkish people will be affected by the decision to raise interest rates?
9. Have you ever experienced a situation where the prices of goods and services in your country were increasing rapidly? How did it affect you?
10. Do you think the decision to raise interest rates will be effective in stabilizing prices in Turkey? Why or why not?
11. How do you think the decision to raise interest rates will impact foreign investment in Turkey?
12. What measures do you think the government could take, in addition to raising interest rates, to address high inflation?
13. How do you think the decision to raise interest rates will impact the overall economy of Turkey?
14. Do you think the government should have taken action to address high inflation sooner? Why or why not?
15. How do you think the decision to raise interest rates will impact the average citizen of Turkey?

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