President Erdogan says he hopes volatile Turkish lira will steady soon

Turkish President Tayyip Erdogan said on Saturday he hoped that volatile foreign-exchange and inflation rates would stabilise shortly and he again promised low interest rates, after a historic plunge in the lira currency to record lows.

The lira shed some 30% over the last month in a selloff driven by aggressive interest rate cuts that Erdogan sought.

“God willing we will stabilise all fluctuations in prices and forex rates in not such a long time,” Erdogan told an audience in the eastern city of Siirt.

“Tayyip Erdogan said low interest rates yesterday, says low interest rates today and will say low interest rates tomorrow,” the president said. “I will never compromise on this because interest rates are a malady that make the rich even richer, and the poor even poorer.”

The currency touched a record intra-day low of 14 to the dollar on Tuesday and logged a record close on Friday, at 13.7485. It is by far the worst-performing currency in emerging markets this year after having shed 45% of its value.

Inflation jumped to a three-year high of 21.3% last month as Turkish savers flocked to hard currencies to protect their wealth.

Despite opposition calls for early elections and a policy reversal, Erdogan has repeated in recent weeks that rate cuts are needed to boost exports, credit, jobs and economic growth.

The central bank has slashed its policy rate by 400 basis points to 15% and is expected to ease policy again this month.

“We will always be there for producers and employers with low interest rates. We’re starting to enforce precautions safeguarding workers against inflation,” Erdogan said.

He said unspecific foreign actors as well as “greedy” businesses that stockpile more goods than needed are in part to blame for some sharp price spikes.

No comments

Thanks for viewing, your comments are appreciated.

Disclaimer: Comments on this blog are NOT posted by Olomoinfo, Readers are SOLELY responsible for their comments.

Need to contact us for gossips, news reports, adverts or anything?
Email us on; olomoinfo@gmail.com

Powered by Blogger.