Turkey’s Erdogan says high interest rates fuel inflation, prevent investment

Turkey has not been able to lower inflation because of high interest rates which were at levels that discouraged investment, President Tayyip Erdogan said on Tuesday, reiterating his unorthodox view on the link between rates and inflation.

“We still have not been able lower inflation and this is due to interest rates,” He said in a speech to deputies from his ruling AK Party after data showing inflation remained in double digits in September.

“The fall in interest rates is unfortunately not at the level we would like. If we can’t achieve this, many troubles await us.

We must solve this,” he said.