Erdogan doubles down on economic policy amid currency volatility
Turkish President Recep Tayyip Erdogan reiterated his stance against interest rate hikes Monday, sending the Turkish lira down 4% as the nation’s economy faces high inflation.
ISTANBUL — Following a volatile week that saw Turkey’s lira fall to record lows against major currencies, Turkish President Recep Tayyip Erdogan on Monday doubled down on rhetoric against interest rate hikes and defended a current policy track that he says will boost economic growth.
While speaking to reporters on a flight back from Turkmenistan, Erdogan reiterated his unorthodox claim that lower interest rates would eventually curb inflation, a stance contrary to mainstream economic theory.
“I have always argued for lower interest rates and repeatedly said rates should be lower,” Erdogan told Turkish broadcaster NTV. “I have never advocated and will not advocate interest rate increases.”
The lira slid more than 4% in value against the US dollar after the statements and was trading at 12.85 per greenback at 7 p.m. Istanbul time Monday.
