Erdogan Pledges to Reduce The Interest Rate to Less Than 10%, Turkish Lira Declining

The Turkish lira lost about 13% of its value within two weeks due to the dismissal of the Turkish President, Recep Tayyip Erdogan, to the former central bank governor, Naji Iqbal, after the latter raised the interest to 19%, with the aim of tightening monetary policy, controlling inflation rates, and stopping the collapse of the currency against the US dollar .

In his address to lawmakers, Erdogan said, “we will reduce interest rates to single-digit numbers, and reduce the budget burden.” In line with his policy to cut interest rates.

In March, inflation in Turkey rose to 16%, jumping in one month by more than 1%. Turkey’s new central bank governor, Shehab Kafcioglu, stated that interest rates will remain unchanged during the next central bank meeting on April 15th.