Turkish President Erdogan promised a new rate cut amid the collapse of the Turkish lira collapse of the Turkish lira against the dollar. Speaking in parliament before the faction of the ruling Justice and Development Party, he said that the country is on the right track in terms of monetary policy, and it is not on the way with those who defend the high interest rate, RIA Novosti reports.
< p>According to the head of state, the high rate (as of November 17 is 16 percent) is a national disaster, and the authorities must resolve it. It is she, Erdogan is sure, that remains the cause of the high inflation, from which the population suffers.
He promised to continue to reduce the rate as long as he is in office. The President recalled that the developed countries of the world, for example, the United States and Israel, are lowering the rates.
According to Erdogan, a high interest rate, which complicates lending to the economy, hinders economic growth and contributes to inflation. In mid-October, the president dismissed the next high-ranking officials of the Turkish Central Bank, who voted against the rate cut. After that, the regulator lowered the parameter by 2 percentage points.
Experts note that in fact, we can talk about the loss of independence by the Central Bank, and also expect that the Turkish lira will continue to fall. On Wednesday, November 17, the currency broke an anti-record for the second day in a row. The dollar was trading at a high of 10.56 lira. Thus, in a month, the Turkish currency fell by 14 percent, and in a year it lost a third of its value.
In Russia, billionaire Oleg Deripaska remains the most vocal supporter of Erdogan's policies. He demands from the Central Bank of Russia to drop rates in the Turkish manner in order to provide cheap loans to the real sector of the economy. According to the businessman, this policy will not affect inflation and the ruble exchange rate. In turn, the head of the Central Bank Elvira Nabiullina did not rule out another rate hike at the December meeting.