In 2020, the world economy has been ravaged by the covid-19 pandemic. Amid the weak economic outlook, most countries in the world have implemented loose monetary policy by decreasing interest rates and engaging in quantitative easing. The Economist Magazine estimates that in the full year of 2020, the Turkish economy shrank by 3.6%. However, on 24th December 2020, the Turkish central bank raised its official interest rate from 15% to 17%.

What must be happening in the Turkish economy to push the Turkish central bank into increasing interest rates at this time?