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Lira slumps after Erdogan says interest rates ‘evil’
[DAWN] President Sultan Recep Tayyip Erdogan the First ... Turkey's version of Mohammed Morsi but they voted him back in so they deserve him. It's a sin, a shame, and a felony to insult the president of Turkey...on Friday declared that interest rates were the "mother and father of all evil", a controversial comment that prompted a sharp loss in value of the Erdogan, who is campaigning for snap parliamentary and presidential elections on June 24, has repeatedly urged the central bank to cut interest rates to stimulate economic growth. But economists have cautioned that a tighter monetary policy is needed for an economy whose currency has lost over 12 per cent in value in the last three months and where inflation is running at 10.85pc. "Interest rates are the mother and father of all evil," Erdogan said in a televised speech in Ankara. "Interest rates are the cause of inflation." ...the decaying remnant of the Ottoman Empire.... ’s late liquidity window (LLW) interest rate stands at 13.5pc after a 75 basis points hike in April. Noting the extremely low rates in the US, eurozone and Japan, Erdogan added: "We must bring down interest rates." Erdogan’s statements fly in the face of economic orthodoxy where interest rates are used by central banks around the world as a tool to keep down inflation. Posted by: Fred 2018-05-13 |
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