Truss New Unorthodox Strategy Receives Criticism From Turkey And European Counterparts
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Roshan Amiri
- . September 29, 2022
- . Update: October 1, 2022 1:26 am
As news about the pound blowing up goes around, UK PM has been accused by European counterparts of ‘gaslighting’ the UK public. In a media statement made by Turkish PM Recep Tayyip Erdogan, while he has overseen a 50pc slump in the lira in the past year, said today: “They were bragging about the pound on how valuable they are against this and that, but we got the news today that they blew up.”
Criticism is coming from all quarters as the new PM’s new strategy has pushed prices of commodities up by 80pc. There was an evident drop in the Sterling, something that has not happened in the recent past and coincided with the announcement of the new fiscal package announced by Chancellor Kwasi Kwarteng. It also landed up spooking international investors and leaving things uncertain.
PM Truss’ new tax cutting strategy doesn’t seem to be going well with her European counterparts it sees. Most are orthodox economists who feel she is playing with fire in her recently taken on tenure at the 10 Downing Street.
While Truss met with Erdogan in Turkey, everything went well then. A few weeks later, Erdogan has been mocking her move, and showing how Turkey can also double down on his controversial monetary plan, asking central bank decision makers to continue lowering rates at its next meeting in October.
Turkey has also been facing a slum of exponential proportions. Turkey’s lira, meanwhile, hit a record low of 18.549 against the dollar on Thursday. The currency has lost roughly 28% of its value against the dollar this year and 80% in the last 5 years as markets shunned Erdogan’s unorthodox monetary policy of cutting interest rates despite high inflation.
