President Recep Tayyip Erdoğan pointed out that high interest rates Turkey is a deterrent among investors and, therefore, interest rates need to be lowered toward the base level to nearly 4.6 percent.
Speaking in a joint broadcast on the ATV and a Haber television channels Wednesday night, Erdoğan noted that the Nov. 1 elections were a political milestone and that, now, Turkey should aim to surpass the current 3.1 percent growth rate of the first three months of this fiscal year the target should be 5 to 7 percent. Erdoğan noted that this is not impossible since Turkey has seen growth rates near 9 percent in the past. He further underlined that the unemployment rate must be decreased in order for investments to rise.
Addressing the finance sector, the president underlined the disadvantages of high interest rates and how they discourage investors due to increasing financial costs. "Currently, the interest rate stands at around 10.6 percent but this figure needs to drop to single digits," noted Erdoğan, adding that this is the only way current investors will invest in different fields and new investors will be drawn to Turkish markets. He also touched on the importance of employment and decreasing product costs. Erdoğan has been criticized for proposing a lower interest rate as some accuse him of threatening the independence of the central bank. He has answered such accusations, saying that these are suggestions and should not be considered as coercions and investors should be encouraged with low financial costs.