Turkish President Recep Tayyip Erdogan’s election-focused economic policies have attracted criticism even from his longtime allies in the business community, the Independent Industrialists and Businessmen's Association (MUSIAD). 

In a rare public disapproval of Ankara’s ways, MUSIAD chair Mahmut Asmali grumbled last week about economic uncertainty, including the central bank’s policy rate, though he backed Erdogan’s push to lower the rate to single digits by the end of the year. A series of unorthodox cuts have brought the rate down to 12% from 19% over a year despite inflation topping 80%. 

“We, too, are tired of talking about interest rates and rate cuts,” Asmali told the financial daily Dunya, suggesting that the rate should be cut to 9% in October or November with an assurance that it would not be touched again in the short run. “Let’s stop talking about rates and look ahead,” he said. “Industrialists and producers are averse to uncertainty. Let’s achieve stability and move ahead.” 

The MUSIAD head also complained that private banks, in particular, “should open the loan taps to those who produce and create jobs. And the central bank’s financing here should be longer-term, not weekly,” he said.