Economics
Erdogan’s War on Interest Rates Is Making Turkey’s Rich Richer
Widening inequalities threaten the president’s popularity even as economy booms.
Fast food restaurants line a street leading out of Taksim Square in Istanbul, Turkey.
Photographer: Nicole Tung/BloombergThis article is for subscribers only.
President Recep Tayyip Erdogan’s battle for lower interest rates risks sharpening inequalities in Turkey’s booming economy and hurting his working-class supporters.
While governments elsewhere look to curb surging prices as the global economy recovers from the pandemic, Erdogan’s betting that lower rates will turbo-boost growth and revive his flagging popularity ahead of 2023 elections.