Turkey's Erdogan says high interest rate 'lobby' guilty of treason
Reuters
Published Feb 28, 2015 04:43PM ET
Updated Feb 28, 2015 05:10PM ET
Turkey's Erdogan says high interest rate 'lobby' guilty of treason
ISTANBUL (Reuters) - Turkish President Tayyip Erdogan on Saturday said anyone opposing interest rates cuts was guilty of treason, piling more political pressure on the central bank.
Governor Erdem Basci on Friday dismissed rumors that Erdogan's criticisms of the central bank for not cutting rates swiftly enough would force him to resign.
On Saturday, the president stepped up his rhetoric: "There is a very serous threat from the interest-rate lobby," he told a news conference broadcast live on NTV.
"Anyone who defends this (high rates) is at the beck and call of the interest-rate lobby, this is treason against this nation."
Erdogan's criticisms of monetary policy are a concern to investors who fear the central bank could lose its independence, speculation that has helped push the lira to record lows.
The president believes current rates are impeding economic growth, which could dent his party's support as it heads into a general election in June.
The bank lowered its main one-week repo rate for the second straight month on Tuesday, trimming it by 25 basis points to 7.5 percent.
"With rates this high, can there be investment in this country? Without investment, there won't be employment or production. Your exports won't get the chance to compete in the competitive market," Erdogan said.
He also dismissed as gossip the rumors that Governor Basci and Deputy Prime Minister Ali Babacan would resign in the face of his criticisms.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.