The new head of the central bank, Hafize Gaye Erkan, has been given the power to raise interest rates significantly, from 8.5% to 40%, in order to make borrowing money more expensive and slow down the rate at which prices are going up. The central bank has said that it will gradually slow down the pace of increasing interest rates and finish this process in a short amount of time. They have also made it clear that interest rates will stay high for as long as necessary to make sure prices stay stable.

Turkey's economy grew quickly in the early years of President Erdogan's leadership, but it has faced challenges recently. The central bank's previous policy of lowering interest rates even though inflation was high caused a currency crisis in 2021. As a result, the government put a plan in place to protect people's money in Turkish lira from losing value.

All in all, the decision to raise interest rates to 40% is a big step towards dealing with Turkey's high inflation. It shows that President Erdogan has changed his mind about interest rates and now understands that action needs to be taken to make prices stable. The new head of the central bank has the power to make these changes and it is expected that the process of raising interest rates will be finished soon.

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

– News Summary
Instructions: Divide the students into pairs or small groups. Give each group a few minutes to read the article. Then, ask each group to summarize the main points of the article in their own words. Encourage them to include key information such as the reason for the interest rate increase, the current inflation rate in Turkey, and the change in President Erdogan's stance on interest rates.
– Opinion Poll
Instructions: Ask the students to form small groups. Provide them with a list of discussion questions related to the article, such as "Do you think raising interest rates is an effective way to tackle inflation?" or "What impact do you think high inflation has on a country's economy?" In their groups, students should discuss the questions and gather opinions from each member. After the discussion, have each group share their findings with the class.
– Vocabulary Pictionary
Instructions: Write a list of key vocabulary words from the article on the board, such as "inflation," "interest rates," and "currency crisis." Divide the students into teams and give each team a set of blank paper and markers. One student from each team will come to the front of the class and choose a word from the list. They must then draw a picture to represent the word while their team tries to guess what it is. The team that guesses correctly earns a point.
– Pros and Cons
Instructions: Divide the students into two groups. Assign one group to discuss the pros of raising interest rates to tackle inflation, and the other group to discuss the cons. Give the students a few minutes to brainstorm their points. Then, have each group present their arguments to the class, allowing for a short rebuttal from the opposing group after each presentation. Encourage the students to use evidence from the article to support their points.
– Future Predictions
Instructions: Ask the students to imagine they are economic analysts. In pairs or small groups, have them discuss and make predictions about the future of Turkey's economy based on the decision to raise interest rates. They should consider factors such as the impact on inflation, the stability of prices, and the overall economic growth. After the discussion, have each group share their predictions with the class and explain their reasoning.

Turkey's central bank has decided to increase its main interest rate to 40% in ? to tackle the country's high inflation. This move is part of a bigger plan to deal with the problem of prices ? up too fast. Inflation in Turkey ? 61.36% in October and is expected to keep ?, reaching its highest point at around 70 to 75% in May next year. While central banks in other countries have been raising interest rates to fight inflation, President Recep Tayyip Erdogan used to argue against this, saying that higher rates would make ? go up even more. However, since he was re-elected in May, he has changed his mind. The new head of the ? bank, Hafize Gaye Erkan, has been given the power to raise ? rates significantly, from 8.5% to 40%, in order to make borrowing ? more expensive and slow down the rate at which prices are going up. The central bank has said that it will gradually slow down the pace of increasing interest rates and finish this process in a short amount of time. They have also made it ? that interest rates will stay high for as long as necessary to make sure prices stay stable. Turkey's economy grew quickly in the early ? of ? Erdogan's leadership, but it has faced challenges recently. The central bank's previous policy of lowering interest rates even though inflation was high caused a currency crisis in 2021. As a ?, the government put a plan in place to protect people's money in Turkish lira from ? value. All in all, the decision to raise interest ? to 40% is a big step towards dealing with Turkey's high inflation. It shows that President Erdogan has changed his mind about interest rates and now understands that action ? to be taken to make prices stable. The new head of the central bank has the power to make these changes and it is ? that the process of raising interest rates will be finished soon.

1. What is inflation and why is it a problem?
2. How do you think increasing interest rates can help control inflation?
3. Do you think it was a good decision for Turkey's central bank to raise interest rates to 40%? Why or why not?
4. How would you feel if prices in your country were increasing very quickly?
5. Do you think President Erdogan made the right decision by changing his mind about interest rates? Why or why not?
6. How do you think raising interest rates will affect borrowing money and loans?
7. What challenges do you think Turkey's economy has been facing recently?
8. What do you think caused the currency crisis in Turkey in 2021?
9. How important do you think it is for a country's central bank to have the power to make changes to interest rates?
10. Do you think it is necessary for interest rates to stay high for a long time to ensure price stability? Why or why not?
11. How do you think the decision to raise interest rates will affect the average person in Turkey?
12. Have you ever experienced a situation where prices were increasing too fast? How did it affect you?
13. Do you think other countries should also raise their interest rates to control inflation? Why or why not?
14. How do you think the process of raising interest rates should be managed? Gradually or quickly?
15. What do you think will happen to Turkey's economy in the future as a result of raising interest rates?

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