Erdoğan adviser calls for lower interest rates

Turkish interest rates are too high and the level isn’t sustainable, said Cemil Ertem, a senior economic adviser to President Recep Tayyip Erdoğan.

The inflation rate is now below the central bank’s funding rate and the bank should pay attention to this fact, Ertem said in an interview with state-run TRT television on Friday.

High interest rates are a more important problem for Turkey’s economy than inflation or the country’s current account deficit, he said.

The government also expects state-run banks to start lowering the interest rates they charge to help stimulate borrowing, Ertem said. Measures recommended by the government to lower borrowing costs should come into effect in the days ahead and interest rates may start to decline, he said.