FILE PHOTO: Turkey’s President Recep Tayyip Erdogan speaks at a news conference during a NATO summit in Madrid, Spain June 30, 2022. REUTERS/Violeta Santos Moura
ANKARA (Reuters) – Turkish President Tayyip Erdogan said on Friday that interest rates will fall as long as he is in power, and that inflation will decline with them, repeating his unorthodox views.
Erdogan was speaking in Istanbul weeks before a presidential election on May 14. Some anticipate a shift to more orthodox policies after the vote.
Turkey’s central bank has slashed its policy rate to 8.5% from 19% since late 2021 in line with Erdogan’s economic views. The easing cycle led to a currency crisis and sent inflation soaring, eating away at household savings.