Omer Aras, an executive at the prominent Turkish business association TUSIAD, said on Thursday that Turkey’s high real interest rates help fight inflation but simultaneously hurt economic growth. Aras, who is also the chairman of QNB’s Turkish bank, warned that if rates remain high for too long, manufacturers could suffer. His comments were made at a TUSIAD event, months after he and the group’s president, Orhan Turhan, faced a government probe and travel ban for criticizing a crackdown on political opposition, which President Erdogan called political meddling.
TUSIAD, whose members represent the vast majority of Turkey’s foreign trade, has consistently supported the government’s recent orthodox economic turn, including high rates to control soaring inflation.
Speaking at the same meeting, TUSIAD Chairman Orhan Turhan agreed that the monetary policy was yielding important results but argued it was insufficient. He pointed to first-quarter growth of 2% in 2025 as evidence of an economic slowdown and called for structural reforms. In a more conciliatory tone than past speeches, Turhan suggested that reducing social polarization would create a better foundation for solving the country’s economic problems.
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