I won’t stand by anyone who defends interest rates: Erdogan

Turkish President and AK Party Chairman Recep Tayyip Erdogan has underlined the ‘low interest rate’ message at the AK Party’s group meeting . Repeating the idea that the ‘interest is the cause and inflation is the result’, Erdogan said his party will remove the burden of the interest rate burden from the nation.

 “We cannot let the nation be crushed by the interest rate. I will continue my fight against the interest rate as long as I am in this position. Those among us who defend high interest rates should not take offense. I cannot and will not defend interest rates on this journey,” Erdogan said. 

Erdogan also addressed remarks made within business circles. “TUSIAD [Turkish Industry and Business Association] and some others have come together and discussed high interest rates. If you are in favor of investment, then here, [I am giving you] loans with low interest rate. Then they run away when we say this. What kind of businessmen are these? Supposedly they are the biggest businessmen of Turkey. […] [Discuss this] as much as you want, we do not care.”

New dollar record

The USD/TRY rate continued its rise ahead of the Monetary Policy Committee’s interest rate decision tomorrow. Expectations for a CBRT rate cut on Thursday and the increasing strength of the dollar after the positive data from the U.S. side led to loss of value for TL. The lira’s degradation accelerated after President Erdogan’s statements. USD /TRY hovers around 10.48, after reaching a high of 10.53.

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