Erdogan: We will cut interest rates and inflation will also go down | Economie

The Turkish Central Bank announced last Thursday that the country’s inflation rate will decline to 8.2% at the end of 2023, compared to expectations of 11.8% for 2022.

Today, Saturday, Turkish President Recep Tayyip Erdogan reiterated his unconventional economic policy, saying that interest rates will fall further, and inflation will decrease as a result, days before the release of inflation data for January, adding that Turkey’s economic problems will end.
“You know my fight with interest rates,” Erdogan told supporters in the Black Sea province of Giresun. “We are lowering interest rates and we will lower them. I know that then inflation will also go down and it will go down even more.”

“The exchange rate will stabilize, inflation will decrease, and prices will also fall. All of these things are temporary,” he added.

Turkey witnessed a rise in inflation last December to its highest level in 19 years, in light of a significant decline in the local currency (the lira) against the background of the Central Bank’s move to cut interest rates by 500 basis points since September.

A Reuters poll conducted on Friday showed that inflation is expected to reach its highest level in 20 years at 47 percent in January.

Expectations of a decline in inflation

On the other hand, the Turkish Central Bank announced last Thursday that the country’s inflation rate will decline to 8.2% at the end of 2023, and it is expected that it will continue to decline to 5% end of 2024.
Bank Governor Shihab Kavuoglu stated that the Central Bank expects inflation to reach 23.2% by the end of this year.

The Turkish Central Bank had previously expected inflation to reach 11.8 percent by the end of this year, and 7 percent by the end of 2023.