Turkish President Recep Tayyip Erdogan hopes the Turkish lira and inflation will stabilize quickly.

He said that on Saturday at a meeting in the city of Siirt in the east of the country.

The national currency has recently been in free fall, making everyday life for Turks more and more expensive.

Turkey is struggling with an inflation rate of more than 21 percent.

Inflation is skyrocketing because the country gets a large part of its products from abroad.

Due to the weak currency, this has become increasingly expensive in recent months.

The Turkish lira has lost more than 45 percent of its value against the dollar since the beginning of this year.

The reason for the weak currency is Erdogan's strange monetary policy.

While normal economic theory prescribes an interest rate increase in case of high inflation (to slow down the economy), the Turkish president has only lowered the main interest rate.

Erdogan said in a speech on Saturday that he would keep interest rates low.

According to him, high interest rates are "an ailment that only makes the rich richer and the poor poorer" and that therefore he will never compromise on it.

Keywords: