Central Bank increases interest rates, “Erdogan’s statements come back to the agenda”
Past statements of Erdoğan who is claimed to have imposed heavy costs on Turkey with the economic model he implemented by saying, “I cannot be with those who advocate interest rates among our friends whom we walk together with. I cannot be with those who advocate interest rates, on this road”, have come back to the agenda with today’s interest rate hike.
The Monetary Policy Committee of the Central Bank (CBRT) has raised the policy rate to 45 percent with a 250 basis point increase in today’s meeting.
President Erdogan, had said “My field is economics, I am an economist,’ and introduced Turkey to a new economic model in 2022 after which his thesis that ‘interest is the cause, inflation is the result’ imposed a heavy cost on Turkey. Today’s interest rate hike brought back Erdogan’s past statements, to the agenda.
Erdoğan, in response to criticism from economists about the thesis ‘interest is the cause, inflation is the result,’ had said at that time, ‘As long as I am in this position, I will continue my struggle against interest rates to the end. Since this is evident (and ordered by Islam), what does it matter to you or me?’.”
It is noteworthy howeever that the President has not made a single comment/statement regarding this issue for a quite a while. Also, it is woth mentioning that when the President made these statement(s) dollar TL rate was around 13-14 TL (roughly). Now it is 30 plus.
