Turkey should not allow investors to get crushed by high interest rates: Erdoğan

ANKARA

President Recep Tayyip Erdoğan said on Nov. 18 that Turkey will not allow high interest rates to put pressure on investors.

“We should not allow our investors to get crushed under high interest [rates]. For this, we attach importance to consult with you,” he said, addressing the Turkish Union of Chambers and Commodity Exchanges (TOBB) Economy Council Meeting.

“It is clear what the high interest costs. Can we really invest when there are high interest rates? Can we get employment? Can we manufacture? It is not possible. So, we need to be much more careful at this point,” he stated.

As with the world, Turkey is entering a new era and the country is in a period of “changing vehicles, when even stepping up gears is not enough,” he said. “We are ready to do whatever it takes for this.”

“I hope our country is now entering a period of rejuvenation,” the president said.

The government will solve the upcoming problems in accordance with the market economy rules, Erdoğan said.

The country will proceed by maintaining fiscal discipline, with growth and an employment-oriented approach, he said, noting that Turkey should focus much more strongly on production, investment, employment and exports.

Lowering inflation down to single digits is the government’s top priority, and the government aims to end the third quarter of the fiscal year with strong economic growth “thanks to leading data for September,” the president said.

Erdoğan said he believes the country will have positive growth despite the pandemic.

Last week, Erdoğan pledged a new economic growth strategy in the wake of a surprise upheaval among economic policymakers, with the Turkish Lira having gained value since then.

Treasury and Finance Minister Berat Albayrak offered his resignation over health issues, and Lütfi Elvan replaced him.
The resignation came one day after Naci Ağbal was appointed the new Central Bank governor.

The Monetary Policy Committee (MPC) meeting will be held on Nov. 19 to announce the Central Bank’s decision on interest rates. Last month, the Central Bank kept its one-week repo rate – also known as the bank’s policy rate – steady at 10.25 percent.