Economist says if government does not quit its interest rate policy inflation will suffocate

Prof. Dr. Özgür Demirtaş has criticized the government’s interest rate policy with a striking statement. He said, “The government will eventually either have to increase interest rates (all their stubbornness will be wasted), or he will continue to be stubborn in this regard in which case the inflation will be suffocating as TL will keep weakening. A correct decision to come too late will be bitter. I’m feel sorry. I swear to God I feel sorry.”

Prof. Dr. Özgür Demirtaş criticized the government’s interest rate policy. Demirtas who made an assessment on his social media account, used the following statements:

“The government will eventually either have to increase interest rates (all its stubbornness will be in vain) and the decision that comes too late will be bitter. Or the fovernment will continue to be stubborn, inflation will suffocate when the TL remains weak… I’m sorry. Oh man, I’m sorry.”

“BUDGET DEFICIT WILL RETURN AS HIGH INFLATION”

The professor went on to say, “I can’t stop telling the truth. The budget deficit will return to you as a bang-bang inflation.”

Prof. Dr. Demirtas also made the following assessment regarding the deletion of KYK debts: “Congratulations to the opposition parties pressing the government for the removal of exorbitant interest on KYK (Credit and Dormitories Institution – for students) debts.

Of course, the Government will not pay them out of pocket, the budget deficit will be closed by printing money, it will return as inflation. That is why it is necessary to save on other expenses of the government.”