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“Our real target is to first lower inflation to single digits as soon as possible, then to target levels … and to ensure that interest rates come down in line with this,” the president said.
Erdogan’s repeated calls for lower rates and his dismissal of two central bank chiefs since mid-2019 have raised concerns about political interference in monetary policy.
The rate hike was the sharpest in more than two years and could support the lira after it hit a series of record lows in recent months, though it could also slow an economic recovery from coronavirus fallout.
The lira on Friday gave back half its gains from a day earlier and weakened more than 1% to as much as 7.6360 against the greenback.
In a written statement, Elvan – who replaced Erdogan’s son-in-law Berat Albayrak after his surprise resignation on Instagram – backed what he called a “strong and clear” move by the central bank.
The government will form fiscal policies that complement monetary policy and support macroeconomic and price stability, he added.
The economy’s recovery could slow as the pandemic worsens and new restrictions are adopted. The consumer confidence index slipped to 80.1 points in November suggesting caution after a brief improvement, official data showed. (Additional reporting by Ece Toksabay and Ezgi Erkoyun; Editing by Jonathan Spicer and Toby Chopra)
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November 20, 2020 at 10:46PM
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Erdogan says rate hike was bitter but necessary for Turkey - Financial Post
"bitter" - Google News
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