Erdogan says he plans talks with lenders on cutting Turkish interest rates

By bne IntelliNews October 16, 2017

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates.

He did not say, however, when those meetings might take place.

Erdogan reiterated his rather unconventional view that the main cause of inflation is high interest rates.

“When you lower interest rates then inflation will come down,” he said.

Turkey’s annual consumer price inflation accelerated from 10.68% in August to 11.2% in September.

Erdogan has been calling on local lenders to lower their interest rates to help government boost economic activity.

He in the past has also criticised banks for making huge profits on citizens’ money by charging high interest rates.

“Banks nearly doubled their profits–this is a disaster. It is our right to expect banks to reduce interest rates to reasonable levels and contribute to the country’s economic development,” Erdogan said in a speech he delivered in August.

The combined net income of Turkey's banks increased by 25% y/y to reach TRY33.3bn (€7.73bn) across January-August, banking sector watchdog BDDK reported on October 3.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EBRD backs OTP Leasing to boost SME financing in Ukraine

The European Bank for Reconstruction and Development (EBRD) has stepped in to bolster financing for small and medium-sized enterprises (SMEs) in Ukraine, providing a guarantee to OTP Leasing to the ... more

Mirziyoyev commends $74bn of foreign investment and IFI inflows as third Tashkent International Investment Forum kicks off

The foreign investment inflow into Uzbekistan has topped $60bn in recent years, President Shavkat Mirziyoyev noted as the third Tashkent International Investment Forum (TIIF-2024) got under way. ... more

Agri Europe Cyprus led by Serbian businessman plans offer to acquire additional shares in Addiko Bank in May

Agri Europe Cyprus, a holding owned by Serbian businessman Miodrag Kostic, is preparing to announce an offer to acquire additional shares of Austria’s Addiko Bank AG in mid-May, ... more

Follow Us On

Most Read

  1. Shocking trial of ex-minister has shifted domestic violence attitudes in Kazakhstan, says brother
    2 days ago
  2. Cheap Russian drones overwhelm US-made Abrams tanks, taken out of action
    8 days ago
  3. The models are wrong, climate change is accelerating faster than predicted
    9 days ago
  4. Russia already treating Bosnia’s Republika Srpska as an independent state
    9 days ago
  5. Saddam-era Iraqi howitzers get delivered to Ukraine
    7 days ago
  1. Albanians campaign on social media to keep bus bridge created in freak accident
    2 years ago
  2. Saudi Arabia to scale back plans for Neom city
    24 days ago
  3. Iran vs Israel: Who is better equipped for war?
    20 days ago
  4. Leading emerging markets move rapidly up World Bank’s PPP GDP and FDI confidence rankings
    25 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    6 months ago

Reports

Dismiss