Central Bank didn’t get message, says Turkish President Erdoğan

ISTANBUL - Reuters

Turkish President Tayyip Erdogan has said the Central Bank’s 50-basis point rate cut announced on Jan. 20 was "insufficient," adding that securing investment and employment was impossible at current interest rate levels.

Erdoğan, who has repeatedly called for looser monetary policy, told a news conference that the Bank had still “not got the message” on interest rates and he would share his views with the prime minister and other ministers.

“If we want investment in Turkey, if we are creating jobs, it’s not possible with this rate. This rate should go down so that there will be entrepreneurship and competition,” he said.

“The Central Bank will continue to get criticism as long as it continues to take wrong steps. My sensitivity on this issue as the president of this country will continue,” he added.

The Turkish Lira weakened slightly to 2.3444 against the dollar after Erdoğan's comments, from 2.3420 beforehand.

The latest cut in the main one-week repo rate, while leaving other rates on hold, had already drawn a swift rebuke from ministers, who said it was not enough to support economic growth five months before a general election.

Last week, Erdoğan warned that he might summon Central Bank officials if they did not respond to his repeated calls for lower rates to boost growth.