ANKARA
The interest rate cut introduced by Central bank of Turkey on Tuesday is insufficient for sorting out economic problems, Turkish President Recep Tayyip Erdogan has said.
Speaking at a press conference on Wednesday, Erdogan said that the Central Bank of Turkey apparently was not advised by the calls for a decent rate cut coming from government officials and businesspeople.
“It is impossible to find this cut sufficient. Even international authorities say this cut will not be adequate. We see this step as useless. The Central Bank’s rate reaches 11 percent. There is no need to fool citizens,” Erdogan said.
“With these rates it is impossible to invest. It is impossible to create jobs. I can never accept the Central Bank’s approach.”
The Central Bank of Turkey on Tuesday cut its key interest rate by 50 basis points from 8.25 to 7.75 percent following a drop in inflation.
Interest rates are a matter of debate in Turkey, with government officials repeatedly criticizing the central bank's tight money policies as limiting economic growth.
