August 17, 2022

Dubai Week

Complete Dubai News World

Erdogan: We will cut interest rates, lower inflation |  Latest news

Erdogan: We will cut interest rates, lower inflation | Latest news

On Saturday, January 29, Turkish President Recep Tayyip Erdogan reiterated his unusual economic policy, saying that just days before the release of inflation data for January, interest rates would be further reduced and inflation reduced. Done.

A Reuters poll on Friday expected inflation to reach a 20-year low of 47 percent in January.

Erdogan urges Turks to borrow from state banks:

President Recep Tayyip Erdogan has urged the Turks to help increase production by borrowing from state-owned banks under a comprehensive new economic policy.

Erdogan said the government would take action to reduce the burden of inflation, which peaked at 36 percent last month.

He also promised to provide new alternative loans to investors.

At Erdogan’s insistence, Turkey’s central bank in November and December triggered unprecedented rate cuts, which triggered the fall of the local currency, causing annual consumer price inflation of almost two decades.

Inflation in Turkey:

Inflation rose to its highest level in December since Erdogan came to power 19 years ago, and the currency crisis was triggered by the central bank’s move to cut interest rates by 500 basis points as part of the economic model set by Erdogan since September.

“You know my struggle with interest rates. We lower interest rates, we lower them, and I know inflation will go down, and it will go down further,” Erdogan told supporters in the Black Sea province on Saturday. .

He added, “The exchange rate will stabilize, inflation will fall and prices will fall. These are all temporary.”

See also  Turkish lira improves after credit restrictions