Turkish President Recep Erdogan, speaking on State TV in Turkey, said that he will boost investment, employment, growth and production by lowering interest rates on Tuesday. Interest rates are the cause and inflation is the result, he continued, adding that he thinks economic growth in 2021 will be about 10%. Hopefully we will soon see inflation falling too, he added. 

Market Reaction

USD/TRY has not seen a reaction to Erdogan's remarks in recent trade, but did on Tuesday rally back to record highs in the 13.50 area, despite most other EM currencies appreciating versus the US dollar on the day.