It might have been worse, if we did not do it (revisited)…

I have laid a very harsh criticism after the CBRT’s 75 bps rate hike. It even was the harshest criticism that I have ever made since the new CBRT administration took office.

I even said this on live TV: “Given the fact that you would get criticised anyway, no matter what you do or how you do it, you should at least do the right thing. Answering to your conscience is harder than answering to somebody else”.

Our people usually believe that the reason for their failure or negative outcome of what they do lies behind the foreign factors. They believe so, because, they think that each success they’ve accomplished so far were not their own doing, but they were handed to them. So, they come to the conclusion that if they are not the ones who bring the success, they cannot possibly be the ones who bring the failure as well. This kind of thinking applies to every setting, from football to the business world.

And that is the real reason shaping the “It might have been worse, if we did not do it” approach by certain groups within the CBRT and the Economy Administration. This kind of approach is trying to find the reason for the devastating side effects of their actions in the mundane details of the current conjuncture. According to this, record breaking imports, ever increasing current account deficit, inflation and interest rates, high unemployment and high budget deficits, they are all the consequences of “unfortunate” events. Even the constructive criticism directed at these issues is not always very well-received.

At this point, I am asking to the Central Banks and their supporters in social media, “What is the worst that could happen?” I will be so glad if I can get some reasonable and wise answers to my question.

Meanwhile, it seems like, according to the business world, the levels above 5,00 in USD/TRY, and 25% in bank loan interest rates are “big trouble”. We will soon see that whether it would be possible or not to test these levels until the elections.