President Tayyip Erdogan said he had lowered Turkey's inflation, currently above 21%, to around 4% before and that he will do it again soon, as prices soar due to the president's push for aggressive monetary easing that has sent the lira crashing.
Erdogan has said the new policy model based on low interest rates was part of an “economic independent war”, which he said was continuing successfully. Economists have called the policy “reckless” and predicted inflation to soar beyond 30% next year.
The lira hit a record low beyond 17 against the U.S. dollar on Friday following fears of an inflationary spiral brought on by the new policy. At the low, the lira had lost some 55% of its value this year, including 37% in the last 30 days.
In a meeting with African youth on Saturday that was aired on Sunday, Erdogan reiterated his unorthodox view that interest rates cause inflation, adding he will not let Turks “be crushed” under interest rates.
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