World Economy

Turkish Minister Urges Lower Rates

Turkish Minister Urges Lower RatesTurkish Minister Urges Lower Rates

Turkey’s economy minister renewed his call for lower interest rates on Monday, signaling further government pressure on the central bank a day before it is expected to keep rates on hold at its monetary policy meeting, Reuters reported. Investors have been hoping the governing AK Party’s election setback this month could give the central bank some much-needed breathing space. President Tayyip Erdogan had repeatedly called for sharp rate cuts in the run-up to the June 7 parliamentary election, even labeling those who defended high rates as traitors. That unnerved investor confidence and has raised concerns about political meddling in monetary policy. But the AK Party lost its single-party rule for the first time since coming to power in 2002. It is now looking for a junior partner to form a coalition government. “Of course we maintain to the end our view regarding lowering interest rates. It would be beneficial for the economy for interest rates to fall in Turkey,” Economy Minister Nihat Zeybekci told reporters in parliament.