Istanbul, Sept 22 (ABC): Turkey’s central bank on Thursday cut its policy rate for the second straight month despite an annual inflation rate that has reached 80 percent and still moving higher. The central bank said it was cutting its one-week repo rate to 12 percent from 13 percent and attributed skyrocketing consumer prices on external factors such as the global jump in the cost of energy and food caused by Russia’s invasion of Ukraine. Official data shows Turkey’s industrial production and retail sales both starting to slow.
Erdogan has openly championed economic growth at all cost. He also rejects conventional economics and believes that inflation can be brought under control by cutting interest rates. “I am an economist. Inflation is not an economic danger that cannot be overcome,” Erdogan told US television this week. “Currently, there are countries which feel threatened by inflation of even eight or nine percent. We have 80 percent,” he said. “And in my country, the shelves are not empty in the markets.”