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Turkish Banks Obey Erdogan’s Calls as Mortgage Rates Slashed

  • ‘There’s a disagreement between me and bankers’: Erdogan
  • 14 banks cut mortgage rates after Erdogan warns of ‘treason’
Turkish equity valuations are at their cheapest in seven years following the biggest selloff worldwide this week.
Photographer: Ismail Ferdous/Bloomberg
Updated on

Turkey’s banks are taking their orders from the top.

By Thursday at 7 p.m. in Istanbul, at least 14 lenders in the country announced they’d slashed interest charges on mortgage loans since President Recep Tayyip Erdogan said on Wednesday that resistance to lower borrowing costs could be "treason." The remarks were the harshest yet from Erdogan, who’s been pushing the nation’s central bank for several years to cut rates.