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Reuters
Reuters
Business
By Ebru Tuncay, Orhan Coskun and Nevzat Devranoglu

Erdogan party split on economic plan as Turkey runoff looms, sources say

FILE PHOTO: Vendors stand in their stall outside a local office of President Tayyip Erdogan's ruling AK Party, ahead of the May 28 runoff vote, at a fresh market in Istanbul, Turkey May 23, 2023. REUTERS/Dilara Senkaya

Days before Turkey's runoff presidential election, there is disagreement and uncertainty within Tayyip Erdogan's government over whether to stick with what some call an unsustainable economic programme or to abandon it, insiders say.

According to interviews with nine sources, either government officials or others with direct knowledge of the matter, an informal group of ruling-party members have gathered in recent weeks to discuss how it might adopt a new policy of gradual interest rate hikes and a targeted lending programme.

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