Calls for interest rate hike do not benefit Turkey, says minister
Turkey's lira has taken a drubbing since coalition talks between the governing AK Party and the main opposition broke down last week
Turkish Economy Minister Nihat Zeybekci said on Tuesday that calling for interest rates to be raised did no good to Turkey, in comments ahead of a central bank meeting where some economists expect a rate hike.
Speaking to reporters after the lira slipped to a fresh record low against the dollar overnight, Zeybekci said that the recent dollar appreciation was "totally speculative".
Turkey's lira has taken a drubbing since coalition talks between the governing AK Party and the main opposition broke down last week, raising the likelihood of fresh election against a backdrop of mounting violence in the country's southeast between government forces and Kurdish PKK militants.
Analysts say the central bank, which holds a rate-setting meeting on Tuesday, desperately needs to hike rates to shore up the currency.
But Nihat Zeybekci said that, while he did not expect a cut this week, Turkey's benchmark borrowing costs should be lowered. The lira was at 2.8570 to the dollar at 1130 GMT after earlier touching a record low of 2.8614.
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