Economics

Lira Rally Loses Steam After Turkey Statement Short on Specifics

  • Meeting includes central bank Governor Cetinkaya, regulators
  • Deputy PM Simsek says government “never fought the markets”

Turkey's Erdogan Said to Call Economy Officials for Lira Meeting

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A statement following a rushed meeting between Turkish economy officials and President Recep Tayyip Erdogan failed to impress investors, who are piling pressure on the central bank to raise interest rates and stop a market rout.

The lira pared earlier gains after the statement was issued by Erdogan’s office on Wednesday evening. The officials promised measures to reduce foreign-exchange and interest-rate pressure, but gave no details on policy measures that would be taken to accomplish it. They also promised to continue pro-growth policies that are increasingly unnerving investors.