Erdogan's Statements Flactuated the Dollar

Erdogan's Statements Flactuated the Dollar Erdogan's statements flactuated the dollar. President Erdoğan made statements regarding the interest. President Recep Tayyip Erdogan made a statement after the video conference held by TOBB today. Last week, Erdogan, who said that a "painful prescription" could be applied if it is necessary for the recovery of the economy, strengthened expectations for an increase in interest rates. https://twitter.com/RTErdogan/status/1329028636138233856 Erdogan said, “It is clear what the high interest costs, can we really invest in high interest rates? Can we generate employment? It is not possible. So can we produce? It is not possible either. We should not crush our high interest investors.” Following these statements, the markets expected a measured rate hike, and while the exchange rates rose, the stock market fell. While the USD / TL exchange rate rose to the level of 7.7860, the Euro / TL rate rose to the level of 9.2470. BIST 100 index started to decline. Continuing his speech by saying, “We are no longer in a period of gearshift, we will solve the problems ahead with a market-oriented approach.” Erdogan strengthened the expectation that the CBRT will implement a tight monetary policy and that financial support will come. Following these words of Erdogan, the exchange rates, which first increased then returned to the level of 7.6845 in the continuation of the speech. While the markets are focused on the MPC meeting that will take place tomorrow, an interest rate increase of 475 bp is expected.