Turkish President Recep Tayyip Erdogan reaffirmed his opposition to interest rates while emphasizing Turkey's commitment to its ongoing economic program aimed at stabilizing inflation and economic growth.
Speaking at the Global Islamic Economy Summit in Istanbul on Friday, Erdogan described interest rates as a flawed economic mechanism that deepens inequality and undermines income justice. He stated, "I have always opposed the distorted system that deepens inequalities, disrupts income justice, and turns billions of people into the slaves of a handful of capitalists. I oppose it again." He reiterated his vision for an economy free from reliance on interest rates and asserted that Turkey would not retreat from its effort to reform the economic system based on these principles.
Despite his stance, Erdogan committed to continuing the economic agenda designed by Finance Minister Mehmet Simsek, which has focused on disinflation and stabilizing the Turkish economy after recent challenges. Erdogan highlighted that the country had made significant progress over the past two years and stressed the goal of achieving single-digit inflation.
Turkey's current economic program was initially launched to counteract the negative effects of Erdogan's unconventional views linking interest rates directly to inflation. The program includes tighter monetary policies implemented by the central bank to curb inflation and manage currency fluctuations resulting from perceptions of presidential influence over monetary decisions.
By maintaining this balanced approach, the government aims to reconcile Erdogan's economic philosophy with pragmatic measures designed to foster stability and growth.
