Turkey President Erdogan Seeks Interest Rate Cuts; Lira Tumbles
September 13 2018 - 2:49AM
RTTF2
Turkey's President Tayyip Erdogan reportedly said Thursday that
high interest rates are a "tool of exploitation" and the central
bank should cut them.
His comments came just hours ahead of a crucial central bank
rate decision announcement.
The Turkish Lira, which had gained on rate hike expectations,
tumbled over 3 percent following Erdogan's comments.
The TCMB is set to announce its latest interest rate decision at
7 am ET. The bank was widely expected to raise the key rate sharply
to 20.75 percent from 17.75 percent.
Erdogan insisted that the central bank remained independent
though his views on the link between interest rates and inflation
remained unchanged, the Financial Times reported.
"Interest is the cause, inflation is the result," the FT
reported Erdogan as saying at a gathering of small business owners
in Istanbul.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Apr 2023 to Apr 2024