‘Non-negotiable for us,’ President Erdogan says, signaling further interest rate cuts
President and AK Party Chairman Recep Tayyip Erdoğan attends and delivers a speech at the AK Party Bursa 8th Ordinary Provincial Congress held at the Tofas Sports Hall in Bursa, Türkiye, on Dec. 28, 2024. (AA Photo)
President Recep Tayyip Erdogan praised the Central Bank of the Republic of Türkiye’s (CBRT) decision to implement a 250 basis point interest rate cut, highlighting 2025 as the beginning of the interest rate cut cycle.
Speaking at his party’s eighth Ordinary Congress held at Bursa Tofas Sports Hall, Erdogan remarked, “We will certainly start lowering interest rates. Interest rates must decrease for inflation to come down. This is non-negotiable for us.”
CBRT announced its anticipated decision on Thursday, lowering the policy interest rate to 47.5%, marking its first rate cut since Feb. 22, 2023.
Erdogan emphasized that the government’s economic and monetary policies focus on ensuring price stability and improving public welfare.
Addressing the minimum wage set for 2025, Erdogan stated, “Although the minimum wage surpasses the inflation target, it falls short of fully satisfying us or truly reflecting the value of workers’ efforts. However, it strikes a balance between employment, inflation, and income.”
‘Inflation is the root of all evil’
Referring to inflation as “the root of all evil,” Erdogan highlighted the significant role housing and rental prices play in driving inflation, saying, “Both the rise in inflation and the consequent increase in living costs are heavily influenced by housing and rental prices. We witnessed their impact on inflation in 2024.”
Erdogan also urged citizens to boycott sellers exploiting consumers with exorbitant price increases, stating, “Unsold products and unused services will find no buyers. In some developed countries, consumers consciously engage in such practices to support their governments. This culture will also take root here.”
He further announced plans to introduce a new social housing project soon.
Addressing economic challenges
Acknowledging public concerns, Erdogan underlined, “Neither I, nor my government, nor the AK Party or the People’s Alliance turn a deaf ear to the grievances of our citizens. We are aware of every challenge and hardship they face.”
Erdogan expressed confidence that Türkiye would meet its 2025 economic targets barring any extraordinary global developments, highlighting that the country’s inflation has been steadily decreasing since June.
“If inflation deviates significantly, we will evaluate and adjust the minimum wage accordingly. However, we believe this won’t be necessary. Our aim is to lower inflation further, increasing purchasing power and stabilizing prices to improve the overall welfare of our citizens,” Erdogan said.
Erdogan appealed for resilience, patience, and strong backing for the government’s economic program, expressing confidence that the hardships of recent years would soon become a thing of the past. Drawing on a common saying, he likened the current sacrifices to sowing seeds for future prosperity.
