Erdoğan Slams Central Bank: There You Have Your Independence

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President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan spoke at the extended provincial chairs meeting of the AKP today (September 14). In his speech, Erdoğan criticized the interest rate hike of the Central Bank.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey (TCMB) raised the political interest rate from 17.75 percent to 24 percent yesterday.

With this interest rate hike, Turkey has become the third country with the highest political interest rates after Argentina and Suriname.

"We will see the consequence of independence"

In his speech, Erdoğan referred to the revisions made by Central Bank in inflation rates, implying that the bank has also made mistakes while determining the interest rates:

"Central Bank has announced the inflation rates for the last 16 years, but the rates have never materialized as they have declared. You see that in mid-year, it revises the inflation rates. Why do you make revisions if you know this job so well?

"Of course, lastly, it considerably increased the interest rates yesterday. You know, it speaks of independence. There you have your independence. We will now see its consequence. I am at the end of my tether. This patience of mine is not without an end."

"Economic assassination"

Referring to the depreciation of Turkish Lira since August, Erdoğan said,

"The increase of dollar's exchange rate to 7 Turkish Lira in August is an evidence of the economic assassination attempt."

"Hoarders will pay the price"

In his speech, Erdoğan also targeted the hoarders:

"Hoarders have also increased in number these days. The Ministry of Interior will give the necessary answer to them. The ones who engage in stockpiling will pay its price. We will conduct raids on them. We will not give them the opportunity to drive the state into a corner." (HK/SD)