Turkey lowers interest rate even as inflation soars to 80%

ANKARA, Turkey (AP) — Turkey’s central bank has lowered its key interest rate despite inflation surging to nearly 80% and making it difficult for people to buy what they need. Following a monetary policy committee meeting Thursday, the bank said it decided to reduce the policy rate from 14% to 13%. The decision is in line with President Recep Tayyip Erdogan’s opposition to high borrowing costs. The Turkish leader has pressured the bank into lowering interest rates in a bid to boost economic growth, insisting that raising interest rates cause inflation. That position contradicts established economic thinking and comes as central banks around the world are raising rates to combat inflation.