Turkish Central Bank hikes interest rate to 24%

Erdogan appoints himself chairman of Turkey’s sovereign wealth fund

He said the sector had $15 billion in debt and that 70 percent of all shopping mall rent contracts were priced in foreign currency. The lira's slight improvement is welcome relief from months of weakening, but even after Thursday's rise, the lira was down nearly 39 percent against the dollar this year.

"Given uncertainty about the strength of FX pass-through, inflation and the USA sanctions outlook, we expect the (central bank) to keep its hawkish tone, leaving its options for a hike open", it said.

Erdogan, a self-described "enemy of interest rates", has pushed banks to lend more to boost private spending. "If you say 'inflation is cause, the rate is the result", you do not know this business, friend, ' he added.

Right before the bank acted, Erdogan decried high interest rates as a "tool of exploitation".

His demands for lower interest rates have fueled concerns that the central bank lacks independence.

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It was expected to begin pushing its way westward across SC later in the day, in a watery siege that could go on all weekend. New Bern Mayor Dana Outlaw told The Durham Herald-Sun around 5am that about 200 people had been rescued so far.


"The lira will live below stress in the arrival months owing to tightening global liquidity conditions and tensions between Turkey and the US", stated Agathe Demarais, Turkey analyst at the Economist Intelligence Unit. In August of a year ago, one dollar bought Three.5 lira; at some level of the last month it fetched more than 6.

Earlier, the U.S. has imposed sanctions on two Turkish government ministers and doubled tariffs on Turkish steel and aluminum imports over the continued detention of American pastor Andrew Brunson on espionage and terror-related charges. It has still lost 38 percent of its value against the US currency this year. GDP growth, however, decelerated to an annual rate of 5.2 percent in the second quarter from 7.4 percent in the first despite low interest rates.

Economists have argued the nominally independent bank has come under pressure from Erdogan who, only a couple of hours before its decision, launched a blistering attack on the bank and interest rates.

"This issue is totally directed by political motives", he said.

"With the current volatility, you have some settlement concerns, the days between when the deal was agreed and the final few days for it to go through".

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The National Hurricane Center , in its latest advisory, said that Hurricane Florence was about to make landfall in North Carolina. More than 80,000 people were already without power as the storm began buffeting the coast, and more than 12,000 were in shelters.


Both actions came after Erdogan named himself the head of the country's nascent sovereign wealth fund on September 11, giving himself even more control over the country's slowing economy. It has also taken other technical measures on reserve- requirement ratios while the banking watchdog has also taken steps to limit swap transactions to underpin the currency.

Turkish President Recep Tayyip Erdogan makes a speech during a meeting in Ankara, Turkey, Sept. 13, 2018.

Zafer Sonmez, head of Turkey and Africa for Malaysia's government investment vehicle Khazanah Nasional Bhd, was named general manager.

Albayrak and Sonmez were among the seven members in the Turkish fund's new board, the Reuters news agency reported. This equated to US$3 billion worth of dollar-equivalent gold liquidity, it said in a statement.

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