Turkey cuts interest rates despite spiralling inflation

President Erdogan wants a high growth, low interest-rate environment. He thinks it will stimulate the economy and create jobs, fuel investment in the country because it keeps borrowing costs low. But, the problem is the currency crisis – caused in part by a loss in trust with policymakers – has caused the opposite to happen. Economic growth is still high here: Turkey is considered an emerging market, and the past few decades have been powered by credit-fuelled growth in sectors like construction.