Erdogan vows to fight “sneaky bullet shot at Turkey’s economy”

Turkish President Tayyip Erdogan blamed once again Turkey’s troubles on foreign powers and “some circles” who “aimed to make Turkey unmanageable for the last 8-9 years” in a speech he made at a publicity event for the ‘Participation Finance Strategy Document.’

“The last bullet of these sneaky attacks was shot at our economy… but our struggle against the traps set against us made us stronger. But unexpected global crises revealed the weaknesses of those who set up these traps,” Erdogan said. 

Turkey’s annual inflation continued to rise for the 16th consecutive month to a new 24-year high of 83.45% in September, according to official data on Monday, while an independent research group claims the real inflation peaked to 186,27%.

Turkey's foreign trade deficit also jumped in August at a record pace of 159.9% year-on-year to $11.19 billion, with imports soaring 40.4%, Turkish Statistical Institute (TUIK) said on Friday.

Erdogan said Turkey “felt the impact of inflation due to global effects” adding that “they will build the Turkish century” when they overcome the ‘inflation issue.’

Turkey unveiled an economic programme last year, to shift to a current account surplus through low interest rates that was supposed to boost production and stronger exports.

But soaring inflation and a tumbling currency due to global energy and commodity prices have made that target unattainable.

Erdogan has long supported an unorthodox theory that low borrowing costs will result in lower inflation, the opposite of conventional policy. He has fired three consecutive central bank governors and two finance ministers in the last four years over disagreements about his economic policy.

“The interest rate has been lowered to 12%,” Erdogan said recently, referring to a shock 100 basis-point decrease in the benchmark policy rate earlier this month. “From now on there is no going up, it will fall further. That will also reduce inflation.”