The leader of Turkey’s main opposition party repeated his calls for the central bank to “not take orders,” as the monetary policy committee prepares to meet Thursday to set interest rates.
All 26 economists surveyed by Bloomberg expect bank Governor Sahap Kavcioglu to continue cutting rates after President Recep Tayyip Erdogan last week rid the monetary authority of policy makers opposed to his demands for lower borrowing costs. While most forecast a reduction of 100 basis points, a sizable minority sees half of that.
“Do whatever is needed, do not take orders from someone,” Kemal Kilicdaroglu, head of the Republican People’s Party, said in speech in northeastern Kars province. “Don’t take decisions that will further make our citizens suffer.”
Kilicdaroglu, who had a surprise meeting with Kavcioglu on Friday, has called on Erdogan to “respect the central bank’s institutional identity” and leave interest rate decisions to “qualified people.”
Last week’s monetary policy committee reshuffle pushed the currency to new lows, extending its losses this year against the dollar to over 20%, more than any other major currency tracked by Bloomberg.
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