Still, one official close to the presidency said the rate cut was worth it despite the risks and inevitable criticism. “There may be negative effects, but it had to be taken … to achieve these benefits.”The president’s office did not immediately comment on whether it pushed for the rate cut and why. Erdogan, a self-described enemy of interest rates, said on Friday that inflation will drop to single digits, but he did not address the interest rate cut. Nevertheless, money market prices show traders expect more cuts before the policy rate returns to 18%-18.5% in a year. He turned up the heat in June when he said he spoke to Sahap Kavcioglu, the current chief, about the need for a rate cut after August.
