(Bloomberg) -- Turkish President Recep Tayyip Erdogan blamed interest rate increases for the current turmoil in developed markets, saying that monetary tightening risks dragging the global economy into recession.

“Europe wanted to continue with high interest rates, but their theory about high rates did not hold. Now they’re paying the price,” said Erdogan, known for his conviction that raising borrowing costs would fuel inflation. Speaking in an interview with AHaber TV, he said Turkey’s banking industry is providing “an example to the world” amid banking stress in the West.

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Erdogan has been exerting his influence on monetary policy, firing three governors in three years over his discontent at previous rate increases. Turkey’s central bank has cut interest rates by 10.5 percentage points since September 2021 to 8.5%, while inflation accelerated to as high as 85.5% last year.

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