Long Opposed to Rate Cuts, Erdogan Now Backs Plan That Includes Raising Rates, Minister Says
ANKARA, Turkey (AP) Turkish President Recep Tayyip Erdogan, long a proponent of cutting interest rates, now supports his advisers economic plan that includes raising rates, a member of his economic team said Thursday.
In a theory that runs contrary to traditional economic thinking, Erdogan has long pressured Turkey's central bank governors to lower rates. The move was blamed for inflaming a cost-of-living crisis in the country.
After winning reelection in May, however, Erdogan appointed a new economic team, including two accomplished bankers, signaling a turn to more conventional policies. But questions have lingered over whether the team would retain Erdogans backing or whether the Turkish leader would reinstate unorthodox policies.