Erdoğan to meet with ministers to deal with ‘interest rate lobby’

President Recep Tayyip Erdoğan said he would probably meet with ministers and state banks next week to tackle high interest rates, which he claimed were hurting the economy.

Erdoğan spoke about the plans on his plane, as he returned from a trip to Russia, Kuwait and Qatar, according to Hürriyet newspaper.

Banks still don't understand that high interest rates cause inflation and they don't care because it is not in their interests to do so, Erdogan said. So the government needed to deal with this “interest rate lobby” in a decisive manner, he said.

We are very determined to tackle the interest rate lobby and these interest rates. If we don’t? First of all, inflation won’t come down; secondly, investment won’t rise; thirdly, employment won’t grow. But if we deal with this, inflation will slow, investment will rise and employment will increase. We have to be successful.

Turkey’s lira has slid almost 15 percent against the dollar over the past two months and the inflation rate remains in double-digits, prompting many economists and analysts to call for interest rate hikes. Erdogan’s government must call presidential and parliamentary elections by 2019.