Erdogan surrendered to interest

The heterodox monetary policy and what was left aside, the ‘New Economic Model that will be an example for the world’ was shelved. With the changing economic management after the elections, President Tayyip Erdoğan also accepted the change in interest policy. “We have accepted that our Minister of Finance and Finance will take the necessary steps with the Central Bank quickly and easily,” Erdogan said. After his visits to the TRNC and Azerbaijan, Erdogan answered questions from journalists on the plane. Erdogan, who also delivered a message on interest rates, pointed out that the policies that citizens had to fight to make ends meet at the peak of inflation for two and a half years were shelved.

INTEREST ‘GET GOOD LUCK’

Erdogan, who said in the past: “We will add value to our money by lowering the interest rate,” said yesterday: “Of course, some friends should not make the mistake of saying: ‘Is the president going to make a serious decision? change in interest policy.’ I am the same here. But at the point of current thinking of our Minister of Finance, of course we accept that he would take the steps that he is going to take here quickly and easily together with the Central Bank, we said ‘good luck’ and in this way, we also declare our determination to reduce inflation to single digits”.

With the series of interest rate cuts in September 2021, which Erdoğan began by saying “What’s up?”, inflation began to rise rapidly and reached its 24-year peak in October 2022 and reached 85.51%. “I am an economist. Saying that I wrote the economics book, Erdoğan fired Naci Ağbal on March 20, 2021, who was appointed as CBRT Chairman, replacing Murat Uysal on November 8, 2020, and raised interest rates by 675 basis points in November and December. 2021.

The limit of hunger has increased, the problem of living has begun.

President Tayyip Erdogan’s “economic model”, which sent the dollar soaring to all-time highs, broke with orthodox policies under former Treasury and Finance Minister Nureddin Nebati and embraced the unorthodox method. Turkey’s import-based economy spiraled into high inflation and the starvation threshold rose rapidly. The depreciation of the Turkish lira reached record levels and citizens began to struggle to earn a living by discounting many staple foods from their tables. According to the latest data announced by Türk-İş, the hunger limit was 10,362 lira.

‘Is Erdogan going to undertake economic destruction?’

Evaluating the statements of President Erdoğan, CHP Malatya Deputy Veli
Ağbaba said: “The dollar rate, which was 8.68 on September 23, 2021, when the interest rate cuts began, is trading today at 23.60. The cost of the KKM, which is invented for dry braking, which ex-Finance Minister Nabati said will not put any burden on the Treasury, was based on TL 200 billion and will continue to rise. A total of $200 billion was sold from the Central Bank to keep it dry. Well, will Erdogan take responsibility for this economic destruction?” he asked.

What did he say?

1 – Interest is the cause, inflation is the result.

2 – Do not expect anything more from me. As a Muslim, I will continue to do what is required.

3 – You know my fight with interest, we will lower and lower interest rates. Know that inflation will also decrease, it will decrease even more.

4 – Those who defend interests among our friends with whom we walk, should not regret it. In this way, I cannot and will not be with those who defend the interest.

5- The exchange rate stabilizes, inflation falls and the deficiency disappears. All of them are temporary.

6 – We are not going to compromise the economic model. With the new economic model, we are pushing back the policy of obtaining speculative money by paying high interest rates.