President Erdogan: Great leaders find it useful to cut interest rates
While the world’s leading central banks are raising interest rates to combat inflation, President Tayyip Erdogan claimed that “great leaders were lowering interest rates against inflation”, citing Russian President Vladimir Putin as an example.
TURKSTAT had announced that inflation in Turkey increased by 80.21 percent year-on-year in August and by 1.46 percent month-on-month. As for the world, while inflation is also showing its effect globally, the most important central banks are raising interest rates, stating the rationale as “fighting inflation”.
The US Central Bank, the Fed, had raised interest rates to 3-3.25 by making the highest interest rate hike in the last 40 years. Likewise, the European Central Bank raised the interest rate by 75 basis points to 1.25 for the first time in its history, while Britain fixed the interest rate at 2.25, applying to the sharpest increase in the last 27 years as part of the inflation fight. Having shared this, inflation rates are at 9-10 percent in Britain and 8-9 percent in the United States.
In his speech at the special awards ceremony of the Istanbul Chamber of Commerce (140th anniversary) today, President Tayyip Erdogan, maintained his slogan that goes “Interest rate is the reason, inflation is the result” and claimed that lowering interest rates is effective in fighting inflation.
Erdogan also claimed that executives whom he called ’great leaders’, were lowering interest rates against inflation; He cited Russian President Putin as an example saying “Now even great leaders have decided that it is worthwhile to lower interest rates. For example, Putin also began to lower interest rates.”
