ZCZC
BCN-27
TURKEY-POLITICS-ECONOMY-RATES
Erdogan slams interest rates as ‘tool of exploitation’
ISTANBUL, Aug 12, 2018 (BSS/AFP) – Turkish President Recep Tayyip Erdogan on
Saturday branded interest rates a “tool of exploitation” which should be kept
as low as possible.
“Interest rates should be kept to a minumum because they are a tool of
exploitation that makes the poor poorer and the rich richer,” Erdogan said in
a speech in the Black Sea city of Rize.
The nominally independent central bank has defied pressure over the last
few weeks to hike interest rates in the face of high inflation and a
collapsing currency.
The lira tumbled 16 percent against the dollar on Friday.
US President Donald Trump said Friday he had doubled tariffs on steel and
aluminium from Turkey, adding to pressure on its troubled economy amid a
diplomatic row with Washington over the detention of a pastor.
“Those who challenge a country like Turkey for the sake of petty
calculations will pay a price both in our region and in their own politics,”
the Turkish leader said.
“We are never accepting this order which declared economic war to the
entire world and which held countries to ransom through sanction threats,” he
added, referring to the US administration.
Erdogan said high foreign exchange rates were the means used in plots
against Turkey.
“We know very well that the issue is not dollar, euro or gold. They are
bullets, cannonballs and missiles of an economic war waged against our
country,” he said.
He said his government had taken measures in response, and would continue
to do so.
BSS/AFP/SR/1710 HRS