Erdogan vows to keep fighting interest rates
Ahead of a central bank rate-setting meeting, Turkish President Recep Tayyip Erdogan reiterated his stance against high interest rates Wednesday as the nation’s currency plumbed new lows.
ISTANBUL – Speaking one day before a central bank interest rate-setting meeting, Turkish President Recep Tayyip Erdogan doubled down on an unorthodox economic stance, sending the nation’s currency to record lows.
Reiterating his view that high interest rates cause inflation, rather than the reverse as set forth by mainstream economic theory, Erdogan vowed to “lift the interest rate burden from citizens” in order to protect consumers during a speech to his party members Wednesday.
“As long as I am in this job, I will continue my fight against interest rates and inflation until the end,” Erdogan said. “My friends who defend the interest rates should not be offended, but I cannot walk with those who defend interest rates.”
The comments deepened a slide in the Turkish lira, which has been plumbing record lows in recent days and hovered around 10.60 per US dollar on Wednesday evening in Istanbul.
