On Wednesday, Turkish President Recep Tayyip Erdogan expressed his hope that the Central Bank’s Monetary Policy Committee would make another interest rate cut next month, and bring the rate down to the single digits at the end of the year.
Erdogan said – in a television interview with CNN Turk – that his country aims to strengthen the lira by lowering interest rates.
He added that Turkey would continue to cut interest rates, not raise them, reiterating his unorthodox view that lower interest rates would lead to lower inflation.
Erdogan called on Turks to take advantage of low prices to make investments.
And the “Central” unexpectedly cut the interest rate by 100 basis points twice in the past two months, bringing it to 12%, despite inflation exceeding 80% last August.
The Turkish Central Bank attributes its decision to cut interest rates to: Persistent signs of slowing down Economic.
Analysts believe that the monetary easing comes in response to Erdogan’s efforts to lower borrowing costs to increase exports and investment, and they expect further depreciation of the currency in the future.