Calis Beach and Fethiye Turkey Discussion Forum

Turkey Related Subjects => Cost of Living in Turkey => Topic started by: glennat on June 25, 2004, 09:23:11 AM

Title: Inflation
Post by: glennat on June 25, 2004, 09:23:11 AM

Hi,

Like many people new to Turkey (I'm so new, I'm not actually there yet!) I'm amazed to hear about the incredible interest rates.  In my experience, high interest rates usually indicate high inflation and therefore the monies earned through interest payments are required in order to keep the relative value of your savings the same.....I must start drinking decaf  :)
Does anyone have any experience of this?

I'm off to get a coffee.

Glen.

Title: Inflation
Post by: Anne on June 25, 2004, 09:35:06 AM

Hi Glen
Use the search facility (top of page)for lots of info on current interest/inflation rates in Turkey.
Makes for interesting reading.
Anne

Title: Inflation
Post by: glennat on June 25, 2004, 10:04:46 AM

Hi Anne,

Thanks for quick reply and good suggestion.  Your reply was so quick that I am still without a coffee (perhaps a good thing :)).
I ran the search as you suggested but seemed to find more questions then answers.  Certainly there seem to be a lot of 'bargains' to be had in the banking sector but inflation in Turkey has been running between 25% - 70% (from what I have read), which leads me to wonder if I have misunderstood something....it wouldn't be the first time.

I'll keep watching this space.

Glen

Title: Inflation
Post by: Scunner on June 25, 2004, 11:58:40 AM

Hi Glen

Have you sobered up yet

You are of course correct that interest rates and inflation follow each other - but if you are not living here you gain one without losing on the other. I am unsure about the true inflation rate, things certainly don't seem to have gone up 20%+ across the board over the last year (apart from houses of course).

Banks offering 60-70% interest on savings do exist, but they are very risky. The idea of a UK bank going bust seems incredibly unlikely, but in Turkey it is not uncommon. The main banks here may offer lower rates, but they are underwritten and an altogether better idea.

Scunner
Financial Advisor to Nick Leeson

Title: Inflation
Post by: glennat on June 25, 2004, 15:56:38 PM

Hi Scunner,

Have I sobered up yet....well.....just.
BTW, thanks for the good advice re: banking in one place whilst living in another.  I never thought of it like that - D'oh.
All I need now is some money.

Glen.

Title: Inflation
Post by: cenk on June 25, 2004, 17:30:20 PM

Hi Glennat
If you want to have detailed information about inflation in Turkey try the link below.
It is the link State Statistics Office's website in English
http://www.die.gov.tr/ENGLISH/index.html

Title: Inflation
Post by: glennat on June 30, 2004, 15:03:11 PM

Thanks Cenk,

The info on that sight (once I stopped trying to read it in Turkish after realising there was an 'English' button) was good and showed inflation currently stands at single figures (between 8.9 and 11%).
This means that interest on savings of 21% will produce an income of about 10%/year.

So, depositing £50,000 will produce interest of £10,500/year.  Leave £5000 in the account to cover inflation and draw the remaining £5500 out.

Good eh.

Glen.

Title: Inflation
Post by: haino on June 30, 2004, 23:49:09 PM

God I hate you maths graduates

Title: Inflation
Post by: Anne on July 01, 2004, 00:19:31 AM

I don't even pretend to understand it Gordon lol

Title: Inflation
Post by: Scunner on July 01, 2004, 10:50:00 AM

Let me help you both on the tricky subject of the Turkish economy.

Beer £1 a pint
Fags £1 per packet

Thank you,

Scunner

Title: Inflation
Post by: canalman on July 01, 2004, 11:45:58 AM

Hi Scunner, That's my idea of inflation, but as I don't smoke (apart from hubble-bubble!), I can have two pints instead :D
Pete [|)]

Title: Inflation
Post by: glennat on July 01, 2004, 14:35:31 PM

...and I'll have a glass of that funny smelling red stuff.  No idea what it was called but it did the trick !

Glen

Title: Inflation
Post by: Scunner on July 01, 2004, 14:36:31 PM

Woodstain?

Title: Inflation
Post by: canalman on July 01, 2004, 16:15:03 PM

Glen, You're not a vampire; are you [?]
Pete ;)

Title: Inflation
Post by: glennat on July 02, 2004, 08:41:29 AM

It may have been red-diesel, it had a similar consistancy.....but I'm sure there was Vodka in it.

So, I guess I'll have a glass of Vodka and red-diesel.