By Tuvan Gumrukcu

ANKARA, Reuters – President Tayyip Erdoan said that he had previously lowered Turkey’s inflation to just 4%. He also stated that he would achieve it again as the country has surpassed 21% since he initiated aggressive reductions in interest rates.

Erdogan claimed that Erdogan’s policy of sending the country’s lira plummeting was part of an “economic independence war”.

Although he claims it will increase exports and employment and investment, most economists consider it dangerous and forecast that inflation will rise beyond 30% in the next year.

Friday’s record-breaking low of 17.17 against the dollar saw the lira fall to an all time low. Fears of an inflationary spiral have caused the currency to lose 55% and 37% respectively in the last month.

Erdogan reiterated that interest rates are what cause price rises in a Saturday meeting with African youth that was broadcast Sunday. He also stated that inflation will hopefully drop soon.

Sooner or later, like we reduced inflation to 4% before I became president, we will do so again. Erdogan stated that he would not allow his citizens to be crushed by interest rates.

The annual inflation rate fell to 4.4% during Erdogan’s tenure as prime minister. Since 2017, it has been rising steadily and rose 3.5% in November to 21.3% for the year.

A majority of Turks believe that a half-point increase in minimum wage, announced Thursday by Erdogan and expected to raise consumer prices inflation by between 3.5-10 percentage points, will not be sufficient.

Erdogan spoke on Sunday and said that Turkey’s economic problems are due to “unreasonable attack” on it. He dismissed calls for capital control as absurd.

He said, “The small rate reductions we made can’t be responsible for this picture.”

The “weapon” of Turkey’s game was the exchange rate. Once prices and them are stabilized, we will “see the doors to a larger, more modern Turkey within months.”

MOUNTING CRITICISM

Erdogan’s pressure, the central bank cut rates 500 basis points in September. The model is expected to boost employment and investment as well as growth.

Turkey’s biggest business organization, TUSIAD, called for the government Saturday to end its low rate policy and to return to the “rules economic science”.

Erdogan, who has been at power for over 20 years, rejects the call to immediate elections. Opposition parties demand that there be no delay in holding national elections. Mid-2023 is the date for national elections.

He called TUSIAD’s statement an attack against the government on Sunday.

“Our government’s economy policy is moving as planned except for some temporary volatility of exchange rates,” he stated. I appeal to all of my citizens for more support in the fight against economic volatility and state government.

At the weekend, thousands demonstrated in Istanbul and Diyarbakir over rising living costs.

Operators stated that some ferry lines in Istanbul and from Istanbul were stopped on Sunday because of unsustainable cost due to the lira collapse.