President Tayyip Erdogan said Turkey will reduce inflation and exchange rate volatility through low interest rates, broadcaster NTV said, after the lira plunged to record lows over the central bank’s aggressive easing policy demanded by the president.
Speaking to reporters on a return flight from Doha, Erdogan repeated his opposition to high interest rates, adding that Turkey’s forex reserves were not an issue despite the central bank’s market interventions last week.
He also blamed stockpiling for the surge in prices and threatened to impose more severe punishments.
“I believe we will reverse these attacks on the currency. As I always say, God willing this will also pass us by. Let everyone know this,” NTV cited Erdogan as saying. [Reuters]