"We Must Reform to Lower the Interest Rates"

"We Must Reform to Lower the Interest Rates" "We Must Reform to Lower the Interest Rates" said Tuncay Özilhan, Chairman of the High Advisory Council (YIK) during his statements. WASH Chairman Tuncay Ozilhan, Turkey Industrialists and Business People's Association (TUSIAD) High Advisory Council (GLC) spoke at the meeting. Özilhan noted the following: "If we want to drop interest rates permanently, we need to lower inflation, undertake economic reforms, mitigate political and geopolitical risks, and complete legal reforms that will ensure predictability." Özilhan stated that in order to increase production, an environment where real interest rates are not high but at a favorable level is needed, and in cases where macroeconomic stability deteriorates seriously, interest rate increases are inevitable as a shock treatment. Saying that shock therapy will not be used for a long time, Özilhan continued his words as follows: "If shock therapy is used for a long time, other disorders will arise in the body. If the money goes into production, the rate of return goes to very risky areas that are higher than usual. As a result, production capacity shrinks, resources shift to speculative areas rather than productive projects. Moreover, income distribution is also distorted. These are not desirable results. " Stating that interest rates will also decrease if uncertainties about the future decrease, inflation expectations decrease and political and economic risks alleviate, Özilhan underlined that it is necessary to complete legal reforms in order to decrease interest rates.