PM Recep Tayyip Erdogan reiterated on Tuesday that he is against increases in interest rates and said the government had alternative plans. Even though he is against rate hikes, the central bank is independent and he has no power to intervene, Erdogan said, adding that he believes this is a temporary situation and his government may implement its plan B and plan C before or after the elections. He did not provide any details. Erdogan's comments are confusing. Earlier this week, he dismissed media reports suggesting that he had mentioned alternative plans for the economy if the Central Bank's aggressive rate hikes fail to stop the depreciation of TRY. Local newspapers last week quoted him saying that he would monitor the results of the rate hike and if they fail, his government may announce its own alternative plans. According to local media outlets, Erdogan made these comments during a journey back from Iran . However, two days ago this week he said he was misunderstood; he did not make such a statement. Recently, economy minister Namik Zeybekci also said that the central bank's recent rate hike was a temporary decision. But the minister did not say if the government had any alternative plans.
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