Turkey’s central bank cut its interest rate for the fourth time this year, hoping to kickstart lending and revive economic growth.
Turkish president Recep Tayyip Erdoğan pressured the bank to cut rates by 10 points since July. Last week, the bank’s Monetary Policy Committee made another cut, dropping the repo rate to 12 percent.
Erdoğan set a goal of 5 percent growth in GDP for 2020 and is willing to buy growth with debt.
But slashing interest rates is likely to fuel the country’s spiraling rate of inflation, now above 10 percent and still rising.