PresidentErdoğan: Interest Rates Will Be Reduced So Inflation Will Fall

President Recep Tayyip Erdoğan, who also stated that he is an “economist,” is determined to lower interest rates: “Interest rates will be reduced so that inflation will also fall. This is a non-negotiable principle for us.”

The Central Bank had reduced the policy interest rate by 250 basis points to 47.5% from 50%, after 22 months.

At the AKP’s 8th Ordinary Provincial Congress in Bursa, Erdoğan said the following:

• “The main goal of our economic program is to compensate for the loss of welfare our nation has suffered due to exchange rate and inflation imbalances as quickly as possible.”
• “The priority of the program we are implementing is to reduce inflation. Because, as everywhere in the world, inflation is the root of all evil in our country.”
• “We plan to launch a social housing mobilization in our country starting from the summer, when the construction activities in the earthquake zones will largely be completed.”
• “We will definitely start reducing interest rates. 2025 will be the year that signals this. Interest rates will be reduced so that inflation will also fall. This is non-negotiable for us.”
• “In addition to monetary policy, we will also activate other tools at our disposal and, God willing, we will bring inflation down to the required level.”
• “Unless there is an extraordinary development in our region or in the world, we have no doubt that we will meet the inflation target for 2025.”
• “(Minimum wage) If there is a serious deviation in inflation, of course, we will not remain indifferent and will make the necessary evaluations.”
• “By completing 2025 in line with our targets, we will bury the difficulties of recent years in history.”
• “We want to reduce inflation and increase the purchasing power of our people in a way that will ease the burden on everyone, while raising the standard of living and keeping prices stable.”