President Recep Tayyip Erdogan on He pledged on Monday that Turkey would continue to cut interest rates rather than increase them, in His most obvious statements come with rising inflation.
“this is government It won’t raise interest rates, no one should We expect this from us. On the contrary, it will continue cutting Erdogan said in A televised speech after a cabinet meeting.
Erdogan reiterated his opposition to higher Borrowing costs, which is says It just makes the rich richer and the poor poorer.
The president doubled down on his commitment to boosting production, exports and employment with Low rates policyAnd the again promise current Account surplus that will eventually stabilize the currency and calm inflation.
Driven by rising food and energy prices, annual inflation in Turkey rate It rose less than expected pace in May but still jumps to 24-year high of 73.5%.
Erdogan often describes high interest rates asmother of all evil.”
Higher interest rates make it more expensive for Families and businesses to borrow money.
Turkey consumer price The index has since risen last Autumn, as the Turkish lira weakened after the central bank in September embarked on The facilitation cycle of 500 basis points.
Prices have gone up despite tax cuts on basic goods and government subsidies for Water and electricity bills to reduce the burden on family budgets.
Center bank It has retained its standard interest rate fixed at 14% in Five meetings this year He said that inflation will start Because of other measures, the so-called rule effect An expected end to the conflict in Ukraine.
