AGL 40.17 Increased By ▲ 0.16 (0.4%)
AIRLINK 127.40 Decreased By ▼ -0.59 (-0.46%)
BOP 6.59 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.51 Decreased By ▼ -0.09 (-1.96%)
DCL 8.55 Increased By ▲ 0.07 (0.83%)
DFML 41.95 Increased By ▲ 0.47 (1.13%)
DGKC 87.80 Increased By ▲ 1.22 (1.41%)
FCCL 32.70 Increased By ▲ 0.56 (1.74%)
FFBL 65.15 Decreased By ▼ -0.27 (-0.41%)
FFL 10.27 Increased By ▲ 0.02 (0.2%)
HUBC 109.90 Decreased By ▼ -0.59 (-0.53%)
HUMNL 14.62 Decreased By ▼ -0.13 (-0.88%)
KEL 5.11 Decreased By ▼ -0.02 (-0.39%)
KOSM 7.55 Increased By ▲ 0.43 (6.04%)
MLCF 41.60 Decreased By ▼ -0.05 (-0.12%)
NBP 59.71 Decreased By ▼ -0.38 (-0.63%)
OGDC 194.00 Decreased By ▼ -0.69 (-0.35%)
PAEL 28.28 Increased By ▲ 0.33 (1.18%)
PIBTL 7.81 Decreased By ▼ -0.19 (-2.38%)
PPL 151.85 Increased By ▲ 0.68 (0.45%)
PRL 26.48 Decreased By ▼ -0.40 (-1.49%)
PTC 16.10 Increased By ▲ 0.10 (0.63%)
SEARL 84.11 Increased By ▲ 5.91 (7.56%)
TELE 7.67 Increased By ▲ 0.28 (3.79%)
TOMCL 35.39 Decreased By ▼ -0.28 (-0.78%)
TPLP 8.11 Increased By ▲ 0.20 (2.53%)
TREET 16.07 Increased By ▲ 0.18 (1.13%)
TRG 52.70 Decreased By ▼ -0.06 (-0.11%)
UNITY 26.30 Decreased By ▼ -0.25 (-0.94%)
WTL 1.25 Decreased By ▼ -0.02 (-1.57%)
BR100 9,918 Decreased By -1.8 (-0.02%)
BR30 30,784 Increased By 32.7 (0.11%)
KSE100 93,553 Increased By 328.3 (0.35%)
KSE30 29,009 Increased By 124.5 (0.43%)
Markets

Erdogan whip-saws lira ahead of key central bank decision

  • We have to be much more careful on this point and not allow our investors to be crushed by high interest rates.
  • Our aim is to reach single-digit inflation right away by maintaining fiscal discipline (and) implementing structural and micro reforms" focused on growth and employment.
Published November 18, 2020

ANKARA: President Tayyip Erdogan said on Wednesday that Turkey's businesses and employers are hampered by high interest rates but added that lowering inflation is a priority, remarks that whip-sawed the lira ahead of a key central bank decision.

The currency rallied some 12% last week after Erdogan pledged a more market-friendly approach to the economy under a newly installed central bank governor and finance minister. Investors expect a big rate hike on Thursday.

But the lira slid as much as 1% after Erdogan told business leaders it was impossible to boost employment, exports and production due to "the cost of high interest rates."

"We have to be much more careful on this point and not allow our investors to be crushed by high interest rates," he said.

The lira regained its losses when the president - who investors say plays a big role in monetary policy decisions - said in the same speech that Turkey's main priority is the fight against inflation, which has been stuck near 12% all year.

"Our aim is to reach single-digit inflation right away by maintaining fiscal discipline (and) implementing structural and micro reforms" focused on growth and employment, he said. "We will solve the problems before us in a way that is in line with market economy rules."

A hike in the central bank's key rate, now at 10.25%, could stall the economy's rebound from coronavirus fallout but could also help avert a broader balance of payments problems by boosting the lira.

Comments

Comments are closed.