Turkey’s Erdogan repeats opposition to interest rates, but says economic plan to continue

Turkish President Recep Tayyip Erdogan on Friday vowed to continue his opposition to interest rates, while saying Ankara was determined to press on with its current economic program until all of its goals are achieved.

Turkey had launched the program to reverse the effects of Erdogan’s unorthodox views that interest rates cause inflation. Under the program, the central bank had tightened its policy to contain rampant inflation and a currency crisis caused by the president’s perceived influence over monetary policy.

Speaking at a Global Islamic Economy Summit in Istanbul, Erdogan, a self-proclaimed “enemy” of interest rates, said work must be done to change and find alternatives to what he called an interest rates-based economic system, and added such a system cannot be viewed as legitimate.

“I have always opposed the distorted system that deepens inequalities, disrupts income justice, and turns billions of people into the slaves of a handful of capitalists. I oppose it again. I have often said that, no matter what, we cannot view as legitimate interest rates and an economic system based on interest rates,” Erdogan said.

“I will continue to voice my longing for an interest rate-free economy from now on too. We will not turn back from our battle for the economic order based on interest rates to change,” he added.

However, the president also vowed to continue implementing the economic agenda drafted by his finance minister, Mehmet Simsek, in order to chart a path of disinflation after consumer prices in Turkey soared.

“We are determined to implement our economic program, with which we have made noteworthy progress over the past two years, until it reaches its goals,” he said, and added that the end goal was to achieve single-digit inflation.