Turkey’s Erdogan says he’s cut inflation to 4% before, can do again
By Tuvan Gumrukcu 14 hrs agoLike© Reuters/Murat Cetinmuhurdar/PPO Turkish President Tayyip Erdogan addresses the audience as he attends a ceremony in Istanbul
By Tuvan Gumrukcu
ANKARA (Reuters) -President Tayyip Erdogan said he had lowered Turkey’s inflation to around 4% before and that he will achieve that again, as it topped 21% following a push for aggressive cuts in interest rates that he has engineered.
Erdogan has said that policy, which has sent the country’s lira crashing, was part of a successful “economic independence war”.
He says it will boost exports, employment, investments and growth, but most economists call it reckless and predict inflation will soar beyond 30% next year.
The lira hit a record low beyond 17 against the dollar on Friday. Hit by fears of an inflationary spiral, the currency has lost 55% of its value this year and 37% in the last 30 days.
In a meeting with African youth on Saturday that was broadcast on Sunday, Erdogan reiterated his unorthodox view that interest rates cause prices rises, adding that inflation would hopefully fall soon.
“Sooner or later, just as we lowered inflation all the way to 4% when I came to power, we will lower it again. But, I will not let my citizens, my people, be crushed under interest rates,” Erdogan said.
Annual inflation fell to around 4% in 2011, when Erdogan was prime minister. It has been edging upwards since 2017 and in November jumped 3.5% on the month and 21.3% on the year.
Many Turks have said a 50% hike in the minimum wage announced b