“Let no one expect this from us. This government will not raise interest rates. “On the contrary, we will continue to reduce them,” Erdogan told a news conference after the cabinet meeting.
THE President of Turkey Recep Tayyip Erdogan announced today that it wants to cut interest rates again, although inflation in Turkey reached 73.5% in May.
“Let no one expect this from us. This government will not raise interest rates. “On the contrary, we will continue to reduce them,” Erdogan told a news conference after the cabinet meeting.
The Turkish president argues, contrary to traditional economic theories, that high interest rates favor inflation. At the end of 2021, it forced the Central Bank to reduce interest rates from 19% to 14% between September and December, causing the currency to collapse.
Inflation in Turkey rose to 73.5% year-on-year in May, the highest level since December 1998, due to rising fuel and food prices, according to official data released on Friday. A year before the presidential election, the opposition and many economists accuse the statistical office (Tüik) of underestimating the true extent of inflation.
“We do not have an inflation problem, but a life accuracy problem,” Erdogan said.
