Turkish President Tayyip Erdogan has reaffirmed his willingness to see his country’s central bank cut interest rates further, sending a “message” to investors a day before the latter’s monetary policy committee meeting.
“I can not be in the same camp as those defending high interest rates,” he said, speaking from the National Assembly building in Ankara, according to Bloomberg. The Turkish head of state reiterated his view that what is considered orthodox from an economic point of view is that high interest rates fuel and do not fight inflation.
The Central Bank of Turkey, under pressure from the country’s Islamist-conservative president, has cut its key interest rate by 300 basis points in its last two meetings to 16%.
It pushed real interest rates even deeper into negative territory, as inflation “climbed” to 19.89% in October. The Turkish pound has lost more than 10% against the dollar in just the current quarter, the worst performance among major currencies monitored by Bloomberg.
According to research by the agency, financial analysts predict a further reduction of the key interest rate by 100 basis points to 15% in Thursday’s meeting.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
