Forex News

Turkish President is interested in lowering interest rates

On Thursday, Turkish President Tayyip Erdogan said that high interest rates are an "instrument of exploitation", and the central bank should reduce them.

His comments were made public a few hours earlier before the central bank announced a decision on monetary policy.

The Turkish lira, which gained confidence amid rising rates, fell more than 3 percent after Erdogan's comments.

The Central Bank of Turkey is going to announce its decision on the interest rate at 7 am Eastern time. It is expected that the bank will raise the key rate sharply to 20.75% against 17.75%.

Erdogan insists that the central bank remain independent, although his views on the relationship between interest rates and inflation remained unchanged, reports the Financial Times. "

" Interest is the cause, and inflation is the result, "Erdogan told the Financial Times at a meeting of small business owners in Istanbul. p>