Turkey will continue to reduce interest rates instead of raising them, Turkish President Recep Tayyip Erdogan clarified today, while trying to downgrade the country’s inflation problem, despite the rally of the index above 70%, noting that it is one of the problems of the economy, as broadcast by Reuters.
In his speech, Erdogan reiterated his commitment to boosting production, exports and employment through his unorthodox policy of low interest rates. He again promised that the current account surplus would eventually stabilize the currency and reduce inflation.
His remarks led the pound to fall again, with the Turkish currency slipping close to 16.6 against the dollar, the lowest level since December. Inflation jumped to 73% last month.
“Part of the problem (of inflation) is that some citizens insist on keeping their savings in foreign currencies, the other part is the increase in imports due to the increase in production,” Erdogan said.
“This government will not raise interest rates. Instead we will continue to lower interest rates,” he added, urging Turks to take advantage of low interest rates and invest.
Source: Capital
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