Erdogan Revives Unorthodox Theory on Interest Rates, Prices

Turkey’s President Recep Tayyip Erdogan revived his unorthodox theory on the relationship between prices and the cost of money three days before municipal elections, saying consumer inflation will slow if Turkey lowers interest rates.

The recent volatility in the lira and other financial assets is the result of an attack by Western countries led by the U.S., but their plot to influence sentiment ahead of the March 31 vote has been foiled, Erdogan said in a meeting with young people broadcast on social media.