“As long as I am holding this job, I will continue my fight against interest rates and inflation until the end.
Following the decision, the value of Turkey’s lira has fallen by 4 percent, hitting 11 against the US dollar for the first time in Turkish history.
“Turkey is a net debtor, and is therefore heavily dependent on foreign investors to fund its current account deficit,” Markov said.
In the meantime, the decision is expected to impact the purchasing power of Turkish citizens as the minimum wage plummeted to 255 dollars in today’s currency.
For Wolfango Piccoli, co-president of Teneo Intelligence in London, the decision was largely expected after Erdogan’s speech in the parliament where he pressed to loosen monetary policy.
EFG Hermes agreed to purchase a 51% stake in the bank in May, with the Sovereign Fund of Egypt also acquiring a 25% stake and the current owner, Egypt’s state-owned National Investment Bank , retaining 24%.
The “technical discussions” have already begun between the fund staff and Tunisian officials, centered on the government’s “economic priorities, the challenges to be met and the reforms to be implemented to overcome the crisis that the country is facing,” Rice said.
In an almost identical situation, the Philippines central bank kept its interest rate at 2 percent, which was also the country’s record low.
Output of secondary activities, which include manufacturing, rose by 1.3 percent.
The Turkish lira fell to an all-time low near 11 lira per dollar.