Erdogan takes wheel of Turkish wealth fund

The depreciation has fueled higher import costs, contributing to an inflation rate that is more than three times the central bank's target, and many investors are calling for a large increase in borrowing costs to put an end to the rout.

"Great decision - made all the more hard by the huge pressure on the central bank from Erdogan", said Bluebay Asset Management LLC strategist Tim Ash.

The lira has lost 40 percent of its value against the USA dollar this year over concerns about Mr Erdogan's influence and a diplomatic spat between Ankara and Washington but firmed to 6.01 following the interest rate decision, from more than 6.4176 beforehand.

There had been indications from the bank that it would raise rates after inflation came in at almost 18 per cent in August, according to official data last week.

The Monetary Policy Committee led by Governor Murat Cetinkaya on Thursday increased the one-week repo rate by 625 basis points to 24 per cent, more than the median estimate in a Bloomberg survey that called for a hike of 325 basis points.

A "tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement", it added.


The lira has plunged in recent weeks on concerns over domestic policymaking and a crisis in relations with the US.

The interest rate decision will be announced at 1100 GMT.

He's delivered on that pledge, ousting the old guard of policy makers who'd guided the economy since 2002 and giving himself the sole authority to make appointments at the central bank and other state organizations. "If you say "inflation is the cause, the rate is the result", you do not know this business, friend", he added.

Erdogan, a self-described "enemy of interest rates", assumed new powers under an executive presidential system following an election in June and has appointed his son-in-law as finance minister.

Relations with the U.S. deteriorated last month after Washington imposed sanctions on two Turkish ministers over the detention of an American pastor and President Donald Trump doubled steel and aluminium tariffs on Turkey.

Related News:



Most liked

Fei-Fei Li, Google’s AI maven, returns to academia
Google is bringing in a new head of AI at Google Cloud, the company confirmed via a blog post this Monday. She spearheaded the acquisition of Kaggle, a company that organises more than 2-million data scientists.

Middle-aged urged to take more drink-free days
A new campaign is advising middle-aged consumers to have more drink-free days in order to reduce alcohol-related health risks. A beer here and a glass of wine there might not seem like much but the units can add up and so too can the health risks.

Aston Martin's 602-HP Electric Rapide E Will Arrive Next Year
The vehicle will sport two rear-mounted electric motors producing more than 610 PS (640 horses) and 950 Nm (700 lb-ft) of torque. The Rapide E four-door, which will be produced in a limited run of 155 units, will be good for 155 miles per hour .

The Google Pixelbook 2 with edge-to-edge screen leaks again
Anyone familiar with the first-gen Pixelbook will no doubt have spotted a few glaring differences. Firstly, we can see thin bezels on both side, and a high-res screen.

Man Utd target Alderweireld: I never wanted to leave Spurs
The Belgian global has iterated that he never wanted to leave Tottenham , and that the rumours suggesting the same were untrue. Nicol says Alderweireld's comments are good news for Tottenham supporters.

Trump Offers Tax Break to Apple to Build in US
It stopped making Focus sedans at a Wayne, Michigan, plant in Would per chance perhaps additionally fair. Manufacturing iPhones in the USA would increase prices too.

Oil hits $80 as Iran fears mount
The Trump administration has invited Chinese officials to restart trade talks, just as Washington prepares to escalate the U.S. The rise reflects concern about the impact of USA sanctions against Iran that will target oil exports.

Novichok suspects say they had nothing to do with Salisbury poisoning
In an address to the Easter Economic Forum in Vladivostok, he said: "Of course, we looked who these people are". The town was covered by this slush.

Georgia Gov. Deal declares state of emergency ahead of Hurricane Florence
President Trump has declared an emergency in the three states and says the government is " as ready as anybody has ever been ". Hurricane Florence is now expected to head more directly west after making landfall, crossing through SC .

Oldest-known human drawing found in in South African cave
A drawing, it can be argued, requires a different conceptual leap than etching. This has shifted our thinking about when human ancestors started drawing.

Dustin Johnson, Paulina Gretzky still together despite cheating rumor
The couple has been together for several years, got engaged in 2013 and were planning on getting married in 2014 . The rumor is that Gretzky and Johnson have split up and it may have been caused by golf Socialite Yassie Safai .

Lexus side view cameras look fantastic
Japanese market versions of the 2019 Lexus ES will be available with digital cameras that replace conventional exterior mirrors. Essentially, the side mirrors are cameras, and the live feed is displayed on left and right screens inside the cabin.

Hurricane Florence has weakened but it will still be devastating
While Hurricane Florence has been downgraded, millions of people in and around South and North Carolina are still on alert. That was one of the first things I learned when I moved down here", says Brown. "You can't stop Mother Nature".

AT&T Announces Remaining Cities for Mobile 5G Rollout, Names 3 Technology Suppliers
New to AT&T's list for 2018 are Houston, Jacksonville, Louisville, New Orleans and San Antonio. Verizon is slowly deploying 5G across 11 cities, and other carriers are as well.

Aussie gold mine produces rare find worth over 10 million US dollars
A handful of gold rocks could be worth several thousand dollars, so security has been beefed up in the days since the find. The largest specimen weighs in at 90kg and took three men to lift it onto the back of a ute.