Turkey’s government and central bank have taken unconventional steps in recent weeks to prop up a beleaguered economy crippled by skyrocketing consumer prices, instead of ending a much-criticized plan to cut interest rates
Turkey’s government and central bank have taken unconventional steps in recent weeks to prop up a beleaguered economy crippled by skyrocketing consumer prices, instead of ending a much-criticized plan to cut interest rates.
President Recep Tayyip Erdogan’s insistence on cutting rates — the opposite of what economists say to do to curb soaring inflation — has weakened the country’s currency and driven prices even higher, making it tough for people to buy basics like food.
Here’s a look at the impact of Erdogan’s economic policies and their long-term risks:
WHAT’S GOING ON?
Erdogan, who has grown increasingly authoritarian and long declared himself an enemy of high borrowing costs, has pressured the central bank into continually cutting interest rates even though inflation surged by 36% last month.
independent.co.uk