Erdogan’s Increased Optimism for Election Victory

Erdogan’s Growing Optimism for Election Victory

The unconventional reduction of interest rates, supported by Mr. Erdogan, which led to the depreciation of the lira against the US dollar, has fueled the recent upward trend of inflation rates in Turkey.

As this rate climbed from around 20% in October 2021 to 85.51% in October 2022, a rate that reached its highest level in 24 years following the economic repercussions of Russia’s military attack on Ukraine.

Since last November, Turkey’s inflation rate has been on a downward trend, although Mr. Erdogan’s critics, questioning the official statistics, believe that his economic program, because it is contrary to the global norm, will continue to be inflationary.

Accordingly, Kemal Kilicdaroglu, the candidate supported by six opposition parties against Mr. Erdogan, has made the reduction of general price levels one of his key campaign promises.

In contrast, Mr. Erdogan continues to emphasize that lowering interest rates encourages investment, leading to increased production and exports, and in the medium term, will pave the way for a reduction in the inflation rate and unemployment.