Turkish President Recep Tayyip Erdoğan on Wednesday defended the interest-free economic policy by ruling out an approach based on high interest and low exchange rates, which he called a system of exploitation that would never return to Turkey.
Erdoğan said: "Our aim is to build an economic structure that will produce more, earn more, and transfer what it gains to areas that will benefit the whole nation and increase welfare and hope."
Erdoğan has said the rate cuts were part of his "new economic model" and a "war of economic liberation" for Turkey.
"Interest rates are the reason, inflation is the result," Erdoğan has argued repeatedly, pledging that his policies will lead to high growth and broad-based prosperity.
"What we are doing is right. We have made and are making a politically risky but correct plan," Erdoğan told ruling party lawmakers in a speech to parliament in Ankara.
"The world knows how uncomfortable I am with high interest rates. I have never been pro-interest rates. I wasn't today and I won't be tomorrow," he said.
Erdoğan said: "Turkey has been fighting against the interest rate lobby and enemies of production and employment."
"We have quit the monetary policy based on high interest rates and instead switched into growth strategy based on investments, employment, production and exports," he added.
"Our country will not return to the system of exploitation ... based on high interest rates."
"What you call the exchange rate rises today, falls tomorrow. Inflation increases today, falls tomorrow," Erdoğan said in a statement while dismissing concerns over the exchange rate.
The government "understands sincere concerns" over uncertainty driven by soaring prices and fluctuations in the currency, he said, adding that they were "carefully monitoring" the situation.
"This is our job," said Erdoğan.
