Turkey’s Erdogan Met With Central Bank Governor

Turkish President Recep Tayyip Erdogan has met central bank Governor Sahap Kavcioglu as the lira suffered a massive selloff and plunged to a new record low on Tuesday, according to an official with direct knowledge of the matter.

Erdogan’s Rate Cut Mantra Spurs Lira’s Worst Streak in 20 Years

The lira, which dropped by more than 15% earlier in the day, was trading 8.8% lower at 12.5023 per dollar as of 4:55 p.m. in Istanbul.

The official, who didn’t elaborate on what was discussed in the meeting, was speaking on condition of anonymity as it wasn’t officially announced. The bank and the presidency both declined to comment.

The latest collapse in the lira came after Erdogan defended his demands for lower borrowing costs that have driven up prices and frustrated investors. They complain monetary policy is becoming increasingly irrational and unpredictable in a country where the president’s influence runs deep. While most central banks are talking of tightening policy as the global recovery fuels inflation, Turkey has slashed 4 percentage points off borrowing rates since September.