ISTANBUL — Turkey slashed its benchmark interest rate more than expected on Thursday, delivering on an assurance from President Recep Tayyip Erdogan over the weekend that loans would become cheaper to boost economic growth.
High unemployment and steep price rises for food and other basic goods in the past year have dented support for Erdogan’s Justice and Development Party (AKP), which suffered a string of losses in nationwide municipal elections earlier this year. The president has sought to quickly resuscitate the economy through a combination of government spending and easy borrowing for consumers.
