ANKARA (Reuters – On Saturday, President Tayyip Erdogan reiterated his unconventional economic policy. He said interest rates would be lowered and inflation would drop. This was days before January inflation data is released. It also added that Turkey would soon overcome its economic woes.
Turkey was caught up in a crisis of currency, fueled by Erdogan’s economic model that saw the central bank slash interest rates by 500 basis point since September. This caused a panic in Turkey and December’s inflation reached its highest levels in Erdogan’s 19 year rule.
A Reuters poll showed that 47% of respondents expected to reach a new high in January, which is close to 20 years after the last one.
You are all aware of the struggle I have waged against interest rates. We will reduce interest rates. “Know that inflation will also fall then and it will drop more,” Erdogan said to supporters in Giresun, a Black Sea province.
“The exchange rate will stabilize and the inflation will fall. Prices will also fall. All of these temporary changes are temporary.
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