Turkey will break ‘triangle of evil’: Erdogan
ANKARA: Turkey will introduce structural reforms to break the “triangle of evil” of interest rates, inflation and exchange rates, President Tayyip Erdogan said on Saturday, adding that Ankara is determined to form a system based on production and employment.
Erdogan last month promised a number of judicial and economic reforms, leading to the expectation of the possible release of politicians, including Kurdish, and human rights advocates from prison. But Erdogan’s recent comments on court rulings and criticism of his government have sparked skepticism about his promise.
Erdogan said via video link during a ceremony in Ankara that 2021 will be ‘the year of democratic and economic reforms’ and that efforts to present the reforms to parliament will move ‘as soon as possible’.
“We hope to overcome problems of economic attacks and the pandemic measures as soon as possible. “By accelerating structural reforms, we are determined to form a system based on production and employment and to break the triangle of evil with interest rates, inflation and exchange rates,” Erdogan said.
“We are not implementing democratic reforms because someone has forced us to do so, but because our people deserve it,” he added.
Erdogan called interest rates the “mother of all evil” and said he believed high rates fuel inflation, contrary to monetary theory. He often characterized Turkey’s economic woes as a result of foreign attacks on the economy.
The central bank of Turkey on Thursday raised interest rates by 200 basis points to 17%, to cool double-digit inflation and strengthen its credibility under the new governor Naci Agbal.