Erdogan: Turkey is fighting an economic war on interest and exchange rates



Turkish President Recep Tayyip Erdogan

Turkish President Recep Tayyip Erdogan said on Saturday that his country was fighting an economic war against those “trapped” in the “devil triangle of interest, exchange rates and inflation” for many years.

Erdogan, who describes himself as an enemy of high interest rates, has added that they are causing inflation, and has repeatedly called for lower borrowing costs.

The Turkish lira has lost about 30 percent of its value this year.

Economists expect Turkey’s central bank to continue raising interest rates after increasing by 200 basis points last month.

Erdogan’s comments on interest rates are putting pressure on the central bank to keep them unchanged despite market expectations.

Source: Reuters


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