Interest policies of Cental Bank in Turkey and effects on the economy

The concept of interest is became one of the most important factor on the economy. Interest is analysed by many economist and the effect of interest is evaluated in their analysis. Central Bank analyses economic situation and takes decisions to effect on interest, these decisions also effects on another economic factors indirectly in the economy. Interest decides are managed my monetary policy of central bank. Taken decides effect on investment, savings, inflation rate, national income level and foreign trade. Thanks to the impacts of interest its highly important monetary policy instrument for central bank. In Turkey, after 2001 crisis interest is became more significant monetary policy tool and it has been decided to use interest as the main tool of monerary policy. This decision makes interest more important about monetary policy management and effect the economy directly. In this study, first interest concept and types of interest will be examined then interest theories will be examined. Further; factors, which effect the interest, will be evaluated. Regarding to the interest rate changes economic results will be analysed. In the last chapter ecomic results of interest will be examined for Turkey.