Erdogan says interest rates will be lowered and inflation will come down too

A vendor waits for customers at his stall in a street market in Istanbul, Turkey, January 4, 2022. REUTERS/Murad Sezer/File Photo

ANKARA, Jan 29 (Reuters) – President Tayyip Erdogan reiterated his unorthodox economic policy on Saturday, saying interest rates would be lowered further and inflation would fall accordingly, days before the data was announced. inflation for January, adding that Turkey’s economic difficulties would pass.

In the grip of a monetary crisis fueled by the central bank’s decision to cut rates by 500 basis points since September as part of an economic model designed by Erdogan, Turkey saw inflation in December hit its highest level in 19 years of Erdogan’s rule.

A Reuters poll released on Friday showed it is expected to hit a nearly 20-year high of 47% in January. Read more

“You know my battle with interest rates. We are lowering interest rates and we will lower them. Know that inflation will also go down then it will go down further,” Erdogan told supporters in Giresun province, in the Black Sea.

“The exchange rate will stabilize and inflation will go down, prices will also go down, this is all temporary.”

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Reporting by Tuvan Gumrukcu; edited by Jason Neely

Our standards: The Thomson Reuters Trust Principles.

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