ISTANBUL —
Turkish President
Recep Tayyip Erdogan insisted on Monday that his government
was opposed to higher interest rates even as inflation in the country soars to
its highest level in nearly 25 years.
اضافة اعلان
“This government
will not hike interest rates. On the contrary, it will reduce them,” Erdogan
said in a televised address after a weekly Cabinet meeting.
The
Turkish central bank, which is nominally independent, holds its next policy-setting
meeting on June 23.
But Erdogan’s
comments came after official data showed that inflation in Türkiye hit 73.5
percent in May, the highest level since 1998.
Contrary to
economic orthodoxy, Erdogan is convinced that high interest rates fuel
inflation rather than rein it in.
The Turkish
economy has gone into a tailspin since last year when Erdogan — who is up for
re-election next year — put pressure on the central bank to start slashing
interest rates.
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