There seems to be no end to the Turkish Lira’s steep fall as it lost further 6 per cent value against the US Dollar on Monday. President Turkey Recep Tayyip Erdogan has once again reiterated that he won’t increase the interest rates in order to provide some stability to Lira that has been in a freefall since January this year.
Apart from not increasing the interest rates, Erdogan has also urged the central bank to reduce the borrowing costs. It is pertinent to mention here that the inflation rate in Turkey is currently soaring over 20pc.
Several economists have predicted a price hike of 30pc in consumer goods in the upcoming months if Turkey did not change its economic policies. Erdogan has publicly said time and again that he would not increase the interest rates despite the soaring inflation since it was directly against one of the basic principles of Islam.
“As a Muslim, I will continue doing what our religion tells us. This is the command,” he reportedly said.