Interest rate hike 'a bitter recipe' to reduce inflation, says Erdoğan

Photo: AA

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The government is determined to bring about a new boom era for Turkey's economy and democracy, President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan has said.

"We are working on both strengthening our economic policies and raising the bar of democracy and freedoms while easing daily life for our citizens," Erdoğan said in his speech at a trade fair in Istanbul.

On the Central Bank's decision yesterday (November 19) to increase interest rates, Erdoğan said, "We are aware that we need to get some bitter drugs."

"Our main goal is to reduce inflation to single digits as soon as possible, then to the level of our medium-term targets, and to ensure that interest rates are reduced accordingly.

"I think the exchange rates will become stable when we achieve this. It is essential for us to get Turkey out of the spiral of interest rates, inflation, exchange rates."

Noting that the support of the business circle and citizens is crucial to achieving the economic goals, Erdoğan said: "First of all, we must bring overseas savings to our country."

He urged the business circle to put money in investments, employment, production and exports.

Investments that spur production and employment will be accelerated by mobilizing domestic and international entrepreneurs, Erdoğan added.

"We should enhance the trust of our nation and investors in our national currency, Turkish liras, thus reduce the weight of foreign exchange currency in deposits," he noted. (DŞ/VK)