CHP’s Karatepe slams CBRT: “You force the poorest to pay the highest interest rates”

CHP Deputy Chair Yalçın Karatepe sharply criticized CBRT Governor Fatih Karahan’s comments during the latest Inflation Report briefing, arguing that the central bank’s tightening policies unfairly burden low-income households dependent on credit cards and overdraft facilities. Economists also questioned inconsistencies in government projections and warned that wage decisions will be based on inflation targets that have repeatedly failed to materialize.

“People borrow because they have no income — not because they enjoy spending”

CHP Deputy Chair Yalçın Karatepe accused the Central Bank of the Republic of Turkey (CBRT) of penalizing ordinary citizens who rely on consumer loans and credit cards to cover basic living expenses.

Karatepe reacted to Governor Fatih Karahan’s statement that “borrowers tend to have higher spending tendencies”:

“They don’t borrow because they enjoy spending. They borrow because they don’t have money and must finance their basic needs.”

Karatepe said that the CBRT’s policy effectively forces those who struggle to make ends meet to pay the highest interest rates in the system, while wealthy individuals continue to grow their assets:

“You make the poorest pay the highest interest rates while those with excess wealth keep getting richer. It is inconsistent and unjust from any angle.”

Criticism grows over inflation targets and policy credibility

Economists also challenged the CBRT’s updated forecasts and messaging.

• İnan Mutlu, commenting on the government’s inflation assumptions, pointed out that different officials give conflicting projections:

  “They are not even aligned with each other.”

• Hayri Kozanoğlu, economist:

  “The CBRT kept the 2026 inflation target at 16%. Minimum wage, pensions and public salaries will be set according to this figure.”

• Ali Hakan Kara, former CBRT chief economist, criticized the repeated claim that weakening demand will lower inflation:

  “The same story repeats every Inflation Report, and it never materializes.”

  Kara added that according to calculations, the dollar should remain below TRY 45 by end-2026 for the CBRT’s forecasts to hold — a scenario he called unrealistic.

• Burcu Aydın, economist:

  “Keeping the 2026 projection unchanged is bad news for fixed-income earners.”

• Emre Alkin, professor of economics:

  “If they say ‘we have no target, whatever happens happens,’ they would do less damage to the economy.”

Growing backlash against credit tightening

Karatepe argued that CBRT policy has shifted from inflation management to social penalty, with middle- and low-income households forced into expensive credit products:

• Credit card rates at the highest level in two decades

• Overdraft accounts (KMH) increasingly used as a survival tool

• Consumer loans limited through macroprudential tightening

Opposition economists warn that aggressive financial tightening combined with optimistic inflation projections risks widening inequality while failing to curb prices.

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