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Turkey Cuts Interest Rate Despite 80% Inflation

  • NEWS, World
  • 1 min read

Turkey has announced a rate cut despite the country’s inflation rate approaching 80%, the highest in 24 years.

The Central Bank dropped its repo rate by 100 basis points – from 14% to 13%.

President Tayyip Erdogan believes that high interest rates cause inflation rather than slowing it.

“Turkey is is a glorious country, but it looks like it’s in a slow motion train crash” comments Bruce Whitfield in conversation with Kokkie Kooyman (Executive Director and Portfolio Manager at Denker Capital).

“And the worst is, the train seems to be speeding up because inflation is increasing” Kooyman responds.