Erdogan says Turkish interest rates continue to decline | Recep Tayyip Erdogan News

Lower costs will boost production, job creation and slower growth, Turkish President Recep Tayyip Erdogan said in a televised address. The lira grew sharply after his remarks, down to 8.1 percent against the US dollar.

Turkey’s interest rate continues to plummet, President Recep Tayyip Erdogan said, blaming the economy for not temporarily relying on foreign currency and transforming it into a successful one for manufacturing and export.

Lower costs will boost production, job creation and lower consumer prices by four times the target of 5%, and that investment will strengthen, Erdogan said in an interview with state reporter TRT Tuesday.

Turkey will not try to attract the exit of the capital which leaves its economy because of “hot money,” or money that can be quickly withdrawn, Erdogan said. His promises put the Turkish central bank in a precarious position after financial advisers said they had tried to reduce interest rates since December. However, the Turkish lira has lost about 28% of its value since the bank began to recover in September and lowered prices by 4 percent to 15%.

“Our country has now come to terms with this crisis, and there is no going back from here,” Erdogan said.

The Lira grew sharply after Erdogan’s remarks, down to 8.1% against the US dollar. It was trading 6.4% down 13.7058 against the US dollar from 11:07 pm in Istanbul.

Shaking Price

Erdogan revealed his most recent thoughts last week, forcing a small interest rate to increase growth and revive his popularity before the 2023 vote.

Pushing low interest rates is not uncommon for a Turkish president, whose idea of ​​lowering prices to curb inflation contradicts the economy. Managing larger debt growth before elections worked for him in the past.

The sheer number of points, the rising cost of inequality and the resulting Covid loss mean that the expected revenue is even greater this time around. The turbulence caused by the collapse of the lira makes life very expensive in the world of 84 million.

Continuing the old system based on “false” sites only exacerbates the problem, Erdogan said.

“The high interest rates that are imposed on us are not new,” he said. “It is an example that destroys domestic services and perpetuates inflation by increasing production costs. We are addressing this.”

The government is working on two aid programs aimed at creating 50,000 new jobs to reduce short-term disruption, the Turkish leader said.

Private companies will receive $ 50 billion ($ 3.7 billion) in new loans under one of the Credit Guarantee-funded programs. The interest rate on the loan will be 7 percent lower than the market, which contributes to a 10% growth in domestic sales in Turkey this year, Erdogan said.