Turkish lira drops to a new record as Erdogan expects 10% economic grow at least this year

The Turkish lira ended its fifth worst month ever, setting a new record, declining against the US dollar and the euro today by 5%.

It comes after President Recep Tayyip Erdogan advocated deep cuts in interest rates despite widespread criticism and high inflation.

The Turkish Lira sank to a new record low of 14 against the dollar, surpassing a low hit last week, when Erdogan defended monetary easing that many economists described as “reckless”.

Since the beginning of the year, the Turkish Lira has lost 45% of its value against the dollar, and in the current month alone it has lost 29%.

Erdogan said on an interview, on Tuesday he expected the country’s economy to grow by at least 10% this year, adding that inflation would also fall as interest rates fell.

In an interview broadcast by the state-owned broadcaster TRT, the Turkish president also said that Turkey would lower interest rates and boost investments, employment and production, and reiterated his insistence that high interest rates are the cause of inflation.

Erdogan said that there is no turning back from the economic model that will get the country out of the trap of the exchange rate, inflation and interest rates, by lowering interest rates.

He added that the fundamental indicators of the Turkish economy are very strong and the country is now waiting for long-term foreign investments.