Yesterday, the Turkish lira continued its slide ahead of the country’s Central Bank meeting. The currency fell to a record low of 10.98 against the dollar. President Recep Tayyip Erdogan on Wednesday sent the lira spiraling when he said he will continue to fight to bring interest rates down. Erdogan previously said interest rates are ‘the devil’ and that lower rates will reduce inflation, in direct contrast to what most economists believe.
The president has also fired multiple Central Bank policymakers this year, including Central Bank chief Naci Agbal, who raised the country’s main interest rate during his time in the position. While the lira has already plunged 30% this year, MUFG Bank said the currency could fall even further.
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