12/16/2021 (Thu) 04:19:28
“The move is consistent with President Tayyip Erdogan’s view, but his monetary policy is simply wrong and now we are running the risk of entering a territory where the real economy will get seriously hurt by the currency.”
The central bank cut rates to 18% last month, despite inflation reaching nearly 20% in Turkey. The cut was seen as an extension of Erdogan’s opposition to high rates, which has seen him replace three central bank governors in the past two years.
Data from the Institute of International Finance showed that foreign investors have been consistently pulling out of Turkey since the rate cut last month.
Turkish stocks dipped 0.2%, as data showed consumer confidence in October touched its lowest level since February 2009.