The Turkish lira is still in free fall. But President Recep Tayyip Erdogan is sticking to his economic policy and influencing the central bank.
Despite the strong devaluation of the local currency, the lira, the Turkish president has once again defended his policy of low key interest rates.
“Interest makes the rich richer and the poor poorer,” said Recep Tayyip Erdogan, according to a report by the Anadolu state agency on Sunday. He will not allow his people to be worn down by interest.
The Turkish central bank lowered the key rate again on Thursday. The currency then hit a record low against the dollar and the euro. The central bank stood behind the controversial economic policy of the Turkish president. Contrary to popular belief, he is of the opinion that high interest rates cause inflation instead of combating it. The key interest rate was cut from 15 to 14 percent. It was the fourth rate cut in a row. The inflation rate is currently 21 percent.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
