Erdogan warns his patience with Turkey’s central bank “has limits” after rates hike
President Recep Tayyip Erdogan has warned his patience with Turkey's central bank “has limits” following its decision to hike interest rates.
Erdogan reaffirmed his stance that interest rates should be lower and said the country would “see the results” of the bank's independence, in a speech to member of his ruling AK Party in Ankara.
It comes after the bank defied the executive president and raised interest rates from 17.75 per cent to 24 per cent – beating market expectations.
Read more: Turkish lira soars after central bank raises interest rates
Erdogan said: “It’s currently my phase of patience but there is a limit to this patience.”
He added: “Here you go, have your independence. We will see the results of the independence.”
The Turkish lira soared to 6.06 per dollar – from a lower of 6.54 earlier that day – following the decision as investor confidence was buoyed after a tumultuous few months for the currency.
It dropped slightly on Friday to 6.12 per dollar.
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Just hours before the bank's decision Erdogan had publicly called for rates to be lowered – he had previously called interest rates “the mother and father of all evil.”
The country's central bank promised action after inflation rose to 18 per cent.