Erdogan Hopes Turkiye Will Attract More Investors

"Our risk premium declines. With the rise in our credit note, more foreign investors will come to our country," Erdogan told a ceremony in Istanbul.

"We believe that the flow of resources to our country will accelerate as the increase in inflation is brought under control," he said.

Since Erdogan's reelection as Turkish president in May, Turkiye's central bank increased the policy rate from 8.5 to 42.5 percent. On Thursday, the central bank increased its policy rate by 250 basis points to 42.5 percent. The slowdown of monetary tightening is widely interpreted as a signal to end the hiking cycle soon.

While Turkiye's annual inflation rate stood at 61.98 percent in November, after peaking at 85.51 percent in October 2022, Turkiye's economy expanded by a more-than-expected 5.9 percent in the third quarter, official data showed.

Erdogan said the high growth potential of the Turkish economy attracts the attention of international investors as well as domestic investors.

"We see that the interest in the Turkish stock market is increasing both domestically and abroad," he said.

Finance Minister Mehmet Simsek, who attended the same ceremony in Istanbul, said the demand for Turkish assets was on the rise, adding that a downward trend in monthly inflation has begun.

4155/v