March 25, 2023

Dubai Week

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Erdogan was criticized by the opposition after the interest rate cut

Erdogan was criticized by the opposition after the interest rate cut

President Recep Tayyip Erdogan has been criticized by Turkish opposition leader and Republican (CHP) leader Kemal Guildaros. The central bank cut interest rates 100 base points from 16% to 15%.

Kılıçdaroğlu criticized the interest rate cut, called on Erdogan to step down, and called for re-election.

Meral Aksener, leader of the opposition Iyi party, Kılıçdaroğlu’s partner in the opposition Umma coalition, criticized the Erdogan government’s failure to manage the economy.

Turkish lira

Yesterday, Thursday, the Turkish central bank announced a decision that was widely expected, andInterest rate reduced by 100 basis points to 15%.

The Turkish lira fell to a new record low of 6% following the central bank’s interest rate cuts under President Erdogan’s pressure, which is seen as a dangerous move for the country’s economy.

The Turkish currency fell to 11.3 lira against the dollar in volatile transactions, and in 2018 touched new lows against the euro in its worst daily performance since the currency crisis.

The lira has lost one-third of its value over the past eight months as investors and savers fear foreclosure and inflation is approaching 20%.

Turkish President Erdogan

Turkish President Erdogan

Commenting on Turkey’s high inflation, the central bank said, “The recent inflation has been driven by supply side factors such as rising import prices, especially food and energy, supply disruptions, managed / controlled inflation and demand improvements.”

He said in a statement that the Turkish central bank would continue to use all the tools at its disposal until there were strong signs of a permanent reduction in inflation and the achievement of the 5% medium-term target in line with its core objective.

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The Turkish central bank said it would continue to make its decisions in a transparent and predictable framework and that a summary of the MPC meeting would be released within five working days.

Turkish President Recep Tayyip Erdogan said at a meeting attended by Turkish Treasury and Finance Minister Ludfi ​​Alvan on Wednesday that he rejects high interest rates and opposes its supporters.

Erdogan’s speech also included an implicit critique of Alvan: “Attorneys-at-Law Chief Comrades, I apologize, I did not go with the Advocates of Interest and will not go. Our actions are accordingly.

The Turkish central bank has cut interest rates to 18% in recent days and then to 16%, up from 19% in the long run.