Turkish lira falls as Erdogan calls for lower interest rates ahead of central bank decision
The Turkish lira slumped this morning after President Recep Tayyip Erdogan called for lower interest rates ahead of a crunch central bank decision.
The troubled currency dropped to 6.54 per dollar from a high of 6.35 as Erdogan made his position clear just hours before the Turkish central bank's monetary policy committee meeting.
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The bank was expected to announce a significant rise in interest rates to slow inflation but clearly faces political pressure from the country's executive president.
The central vowed to act last week after inflation hit 18 per cent.
The lira did gain some ground back, however, rising to 6.44 per dollar shortly before the meeting at midday.
Erdogan appointed himself chairman of the country's multi-billion-dollar sovereign wealth fund yesterday extending the executive powers of his presidency.
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He also named finance minister Berat Albayrak , his son-in-law, as his deputy.