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Turkey – Central bank resists Erdogan’s calls for rate cut (Al Jazeera, Bloomberg)

Thursday's rate decision could set central bank Governor Sahap Kavcioglu on a possible collision course with Erdogan, who holds the unorthodox view that higher interest rates fuel consumer price gains and is seeking lower borrowing costs to fuel economic growth [File: Nicole Tung/Bloomberg]

Thursday’s rate decision could set central bank Governor Sahap Kavcioglu on a possible collision course with Erdogan, who holds the unorthodox view that higher interest rates fuel consumer price gains and is seeking lower borrowing costs to fuel economic growth [File: Nicole Tung/Bloomberg]

Selcuk Gokoluk and Tugce Ozsoy

The Turkish lira rallied to lead gains among emerging-market peers after Turkey’s central bank held its benchmark interest rate, defying President Recep Tayyip Erdogan’s calls for a cut. The currency rose as much as 1.2% after the Monetary Policy Committee held its one-week repo rate at 19% for a fifth month as forecast by all 20 analysts surveyed by Bloomberg.

Turkey: Central bank resists Erdogan’s calls for rate cut | Business and Economy News | Al Jazeera