Having bounced off record lows earlier in the week, the Turkish Lira is re-tumbling following President Erdogan's comments that interest rates are “the mother and father of all evil” and that Turkey must “target double-digit economic growth.”
Erdogan added a few more colorful comments sure to send shivers down the spine of any fiscal conservative (or Turk who does not want to see his currency's value hyperinflated away)…
*ERDOGAN: TURKEY TO EMERGE VICTORIOUS AGAINST INTEREST RATES
*ERDOGAN: INTEREST RATES THE REASON FOR INFLATION (umm, not sure you have that right)
*ERDOGAN: TURKEY MUST PULL DOWN INTEREST RATES (so much for CB independence)
*ERDOGAN: TURKEY WON'T STEP BACK FROM budget DISCIPLINE
And that sparked Lira selling…
Erdogan says he will emerge victorious in his fight against interest rates after June 24 elections.
“FX speculators, interest rate lobby and enemies of Turkey under the guise of credit rating firms are not our concern,” Erdogan says in Ankara, addressing business-people.
And Erdogan says recent economic disruptions in Turkey “due to global conditions.”
As long as Turkey “stands strong,” it will overcome “global negativity”
