said the Turkish president Recep Tayyip ErdoganThe country will adhere to a very easy monetary policy approach, represented byinterest rates In the single digits, after the central bank cut borrowing costs.
The central bank said this week that it has ended its monetary easing cycle, cutting its benchmark interest rate to 9% from 10.5%. This is a challenge to the prevailing tightening trend this year worldwide, as many central banks raise interest rates to counteract inflation high.
“We cut interest rates to single digits, and the trend will continue like this. Don’t worry, inflation will also go down,” Erdogan said in a speech in Konya on Saturday. Erdogan’s unorthodox view is that low interest rates can calm inflation.
The Central Bank of Turkey cuts the interest rate to 9%, ending the monetary easing cycle
Erdogan has repeatedly stressed his demands in recent months on lower borrowing costs to stimulate the economy and exports, even as inflation poses the most pressing threat to his two-decade grip on power ahead of elections in June.
I backed off lira By more than 28% against the dollar this year, it is the second worst performer among the major emerging market currencies. The rise in food and energy prices, as a result of the Russian invasion of Ukraine, harmed the Turkish economy.