Wut? If you raise rates, then the price of bonds falls...if you hold debt, you want lower rates because you can then sell your bond at a higher price (theoretic

Wut? If you raise rates, then the price of bonds falls...if you hold debt, you want lower rates because you can then sell your bond at a higher price (theoretically, these are foreign-currency bonds so it isn't quite that simple). And Turkey needs higher rates. The rate has been far below the natural rate for way too long. In capital markets, you saw Turkish companies make all these crazy acquisitions (in addition, to being forced by the govt into splashy infrastructure projects in areas that supported the govt)...the bust from this will be incredible (the only leverage Turkey has is that French/German banks are neck deep in this debt). Lowering rates is just prolonging the inevitable (the majority of Turkey's corporate sector is already functionally insolvent).