Turkey’s Erdogan mulls another en-masse rate-cut

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Turkey’s Erdogan mulls another en-masse rate-cut

On Saturday, the 7th of September 2019, Turkey’s much-centrist President Tayyip Erdogan said he had been expecting Turkey’s Central Bank to keep axing interest rates, as global slowdown alongside a shaky stance of Erdogan following Istanbul’s Mayoral election last month had been weighing on to the transcontinental country’s economic outlook.

More critically, Erdogan’s latest comment came into being five days prior to a monetary policy board meet of Turkey’s Central Bank. In point of fact, after Erdogan had ousted Turk Central Bank’s former governor, newly appointed governor of Turk’s Central Bank had stunned the financial markets last month with an en masse interest rate cut of 425-basis point to 19.75 per cent, while back in the August, following Turk Central Bank’s decision to axe interest rate, Erdogan had been quoted saying that the downward spiral of interest rate would likely to continue.

Echoing his sentiments expressed followed by an August rate cut, Tayyip Erdogan said in a speech on Saturday (September 7th) at a speech in Turkey’s north-western city of Eskişehir, “The monetary policy board will meet on Thursday and I think interest rates will fall further.

With falling interest rates, inflation is also falling”. Nonetheless, Turkish currency shed more than 30 per cent of its valuation against the American dollar last year, which Erdogan often called as an aftermath of an economic war against the United States.