Summary
Undaunted by Turkey's near certain failure to come close to its economic growth goal this year, President Recep Tayyip Erdogan has set a target for 2020 that's twice as ambitious.
Morgan Stanley estimates Turkey's potential growth at about 3.7 percent.
Erdogan, who advocates an unorthodox theory that high interest rates cause rather than curb inflation, made clear that easier monetary policy will be the centerpiece of Turkey's efforts to replicate growth levels last seen before a currency crash last year. Reiterating that he's "allergic" to elevated borrowing costs, the president said the central bank under its new governor was committed to bringing interest rates lower.
Gov. Murat Uysal had only been in office a few weeks when he slashed the benchmark by 425 basis points to 19.75 percent in July, the biggest rate cut in at least 17 years.
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