We will not back down from lowering interest rates


Turkish President Recep Tayyip Erdogan said on Monday he would never support a rate hike and “never back down from it”, repeating his support for recent interest rate cuts that have caused the lira to plummet.
NTV quoted Erdogan as telling reporters during his return flight from a visit to Turkmenistan that the recent exchange rate fluctuations were not based on economic grounds, and that Ankara was ready to provide the necessary support to boost investments, specifically through state banks.The TV channel also quoted him as saying that he had not changed his opinion that interest rates were causing inflation, adding that he expected inflation to drop before the elections scheduled for 2023.

The lira has lost as much as 45 percent of its value against the dollar this year, and most of those losses came after Erdogan stepped up his defense of his stance on monetary policy.

The central bank has cut the interest rate by 400 basis points since September, despite the annual inflation rate reaching nearly 20%.


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