North Cyprus News | Turkish Interest Rate Rises to 12%

North Cyprus News | Turkish Interest Rate Rise to 12%North Cyprus News – Turkish Interest Rate Rises to 12%

The Turkish Central Bank raised its lending rate to 12% from 7.75% in a bold move to defend the Turkish Lira. The sterling exchange rate which was 3.85TL/£1 a few days ago is now 3.58TL/£1. President Erdogan tried to prevent this rate rise, criticising any moves by the Central Bank to raise interest rates:

“The central bank is an independent institution . . . of course I am against increasing interest rates. If something happens in the future they will be responsible”

The Governor, Erdem Basci, has been under incredible pressure from the government not to raise interest rates and it is not sure how Erdogan will respond. It is not even sure that the strengthening of the currency today is more than a blip. We shall have to wait and see.

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