Erdogan sticks to not backing down from interest rate cuts despite...

  The Turkish lira fell more than 4 percent against the dollar today (Getty)
Turkish President said Recep Tayyip ErdoganToday, Monday, he will never support raising interest ratesAnd he "will never back down from that", repeating his supportive stance on the recent interest rate cuts that caused The fall in the value of the lira. 

NTV channel quoted Erdogan as telling reporters during his return trip from a visit to Turkmenistan that the recent exchange rate fluctuations were not based on economic grounds, and that Ankara was ready to provide the necessary support to boost investments, specifically through state banks.

The TV channel also quoted him as saying that he had not changed his opinion that interest rates were causing inflation, adding that he expected inflation to drop before the elections scheduled for 2023.

On Saturday, Erdogan ordered an investigation into possible currency manipulation after the lira plunged to record lows against the dollar.
Erdogan has tasked the Government Oversight Board, an auditing body that reports to the presidency, to determine which institutions have bought large amounts of foreign currency and whether any manipulation has occurred.
Erdogan said, last week, that his country is fighting an “economic war of independence” and will not submit to pressure to change this course, adding, “We are witnessing the manipulation of the exchange rate, interest rates and price hikes by those who want to take our country out of the equation.”
Turkey’s Central Bank Governor, Şehab Kocıoğlu, said last Thursday that he discussed recent interest rate cuts with bank representatives in a meeting after the lira plunged to record levels, adding that the banking sector is able to weather market volatility.

The lira depreciated by 4%

The Turkish lira fell more than four percent against the dollar in weak and volatile trading on Monday, approaching the record low levels recorded last week.

The lira fell to 12.85 by 06.13 GMT, after closing at 12.25 on Friday. Liquidity was low with an increase in the disparity between the buying and selling prices, just as it happened in the trading of last week.

Last Tuesday, the Turkish currency hit a record low of 13.45 after Erdogan defended the central bank’s move to cut the interest rate to 15 percent, despite the inflation rate reaching 20 percent.

Confidence in the economy fell 2% in November
In the context, data from the Turkish Statistical Institute showed, today, Monday, that confidence in the country’s economy fell by two percent on a monthly basis in November to 99.3 points.
The index, which indicates optimistic expectations when it is above 100 points and pessimistic when it falls below it, reached a record low last year before recovering with the easing of Corona restrictions in the summer.
The index jumped above 100 points in July for the first time since May 2018.