CNN’s Erdogan analysis: Economic betting will continue after the election

After making statements to CNN International President Recep Tayyip Erdoğan’s assessments of the Turkish economy, an analysis of these statements was carried out on CNN.

The analysis, published under the headline “Turkey’s Big Economic Gamble Appears to Continue,” claims Erdogan stated in an interview with CNN that if re-elected, he would continue to cut interest rates to combat rising prices.

In the analysis, which included the words “Turkish President Recep Tayyip Erdogan still believes he is right when it comes to fighting inflation, and most of the rest of the world is wrong”, it was mentioned that investors are uneasy about the possibility. of Erdogan’s re-election.

In the article, which states that stocks fell on Monday and the TL fell to a record low against the dollar, there is information that Erdogan’s economic policies caused a jump in inflation and the TL lost more than 40 percent in value. last year.

HE SAID “I WILL CONTINUE TO LOWER THE INTEREST”

Defending his decision to abolish interest rates in an interview with CNN, Erdoğan said that lowering interest rates had positive results. Erdogan claimed that if he is re-elected on May 28, he will continue to lower interest rates to combat rising prices.

“I have a thesis that there is a positive relationship between interest rates and inflation. The lower the interest rates, the lower the inflation. We have seen the results of the steps we have taken,” he said.

Stating that inflation will decrease further and that he will not make any changes in economic policies after the elections, Erdogan said: “After the elections, follow me, you will see that inflation will decrease along with the interest rate.”

Asked if this meant there would be no change in economic policy, Erdogan replied: “Yes, definitely.”

“TL WILL BE UNDER PRESSURE”

“President Erdogan’s unexpectedly strong performance in Turkey’s presidential election on Sunday means that a return to orthodox politics appears further away than ever,” James Reilly of Capital Economics said in a note on Monday. As a result, it looks like the Turkish lira will be under severe pressure this year.”

“Turkey will need to reduce inflation, maintain financial stability and put the economy on a path of sustainable growth regardless of the election results,” JPMorgan analysts said in a statement Monday.

Stating that the country’s outlook depends on the transformation of economic policies, the statement said: “If policies move towards more orthodoxy, the process of reducing inflation will be faster.”