Skip to main content

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.
A man walks past a fruit seller at Eminonu district near Spice Bazaar in Istanbul, on Nov. 24, 2021.

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.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.