(Bloomberg) -- Turkish President Recep Tayyip Erdogan said he is “absolutely” against high interest rates.
“I know our friends are getting angry but, with all due respect, if I am the president of this country, I will continue to talk about this because I don’t believe my country can develop with high interest rates,” Erdogan told a conference in Istanbul on Friday.
Turkey’s Central Bank Governor Naci Agbal has raised interest rates by a cumulative 675 basis points to 17%, returning to orthodox monetary policy since his appointment in November. The central bank left its benchmark interest rate unchanged Thursday, while pledging to keep it elevated for an “extended” period to contain an inflation rate that was 14.6% at the end December.
Erdogan claims that high interest rates spur inflation -- in contrast to commonly accepted economics. He told the gathering that price stability and fiscal discipline will be key objectives this year even with the fallout of the coronavirus.