Turkey’s Erdogan Pledges More Interest Rate Cuts Citing Islam For His Reason Why

Bloomberg: Turkey’s Erdogan Pledges More Rate Cuts, Triggering Lira Losses 

(Bloomberg) -- Turkish President Recep Tayyip Erdogan pledged to continue interest-rate cuts that have made the lira the world’s worst-performing currency over the past three months, referring to Islamic proscriptions on usury as a basis for his new policy push. 

“What is it? We are lowering interest rates. Don’t expect anything else from me,” Erdogan said Sunday in televised comments from Istanbul. “As a Muslim, I’ll continue to do what is required by nas,” Erdogan said, using an Arabic word used in Turkish to refer to Islamic teachings. 

The lira dropped as much as 2.6% to 16.8436 per dollar in early Asian trading Monday, heading for a fifth day of declines. The currency, which has tumbled 48% over the past three months, reached a record low of 17.1452 on Friday. 

Erdogan’s comments on Sunday were the second time in a month he has invoked religion to justify the current monetary stance, which is in line with his demands for lower borrowing costs to boost economic growth. 

The lira’s collapse is the outcome of an economic siege, but Turkey won’t back down from its new economic policy, he said.  

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Update: Erdogan Reiterates Commitment To 'Islamic' Rate-Cut Plan, Threatens Turkish Business Lobby Over Dissent (Zero Hedge)  

WNU Editor: Turkish President Erdogan says his policies will succeed .... Turkey's Erdogan says he's cut inflation to 4% before, can do again (Reuters). The problem is that it is not working .... Turkish central bank cuts rates, sending lira to record low (CNBC).