“As long as your brother is in this position, the interest will continue to decrease with each passing day… every week and every month,” Erdogan told a crowd in the western province of Balıkesir.
Inflation has been rising in Turkey since November last year as the lira weakened after the central bank cut interest rates in a series of unconventional monetary policy easing that Erdogan had long sought.
The Turkish annual inflation recorded a new peak last September, representing the highest level in 24 years at the level of 83.45 percent.
The Turkish economy achieved a growth in the first quarter of the year by 7.3 percent, according to data from the Turkish Statistical Institute issued last May. It recorded a growth of 7.6 percent on an annual basis in the second quarter of this year, a slight increase than expected, driven by the increase in exports and domestic and foreign demand. Turkish Statistical Institute data showed that gross domestic product grew by 2.1 percent.
Growth is expected to slow in the second half of the year due to a slowdown in domestic and external demand, due to an expected slowdown in Europe, which is Turkey’s largest trading partner. Last year, the Turkish economy recovered strongly from “Corona”, and achieved a growth of 11.4 percent, the highest rate in a decade.
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