Turkey's Erdogan Stands by Opposition to High Interest Rates

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The lira has lost about 40 percent this year, largely over worries about Erdogan's influence over the economy, his repeated calls for lower interest rates in the face of high inflation and deteriorating ties with the United States.

Turkish President Tayyip Erdogan yesterday said it was wrong of the United States to try to bring Turkey into line with threats, a day after US President Donald Trump doubled tariffs on metal imports from Turkey as the row between the two North Atlantic Treaty Organisation allies deepened.

Relations between Turkey and the US have been tense over a range of issues, from the Syrian conflict to the imprisonment of American pastor Andrew Brunson.

His announcement came as Turkey's embattled lira hit new record lows against the us dollar and euro, losing almost 9% in value as strains with America showed no sign of abating and fears grew over the exposure of European banks.

All eyes will be on the lira when foreign exchange markets reopen on Monday after the weekend pause.

"I call out to those in the United States".

Erdogan, speaking to political supporters in the Black Sea resort of Trabzon, said, "The aim of the operation is to make Turkey surrender in all areas, from finance to politics".

The comments come amid a spat between the U.S. and Turkey over Ankara's jailing of an American pastor on spying charges.

Turkish President Recep Tayyip Erdogan stood by his opposition to high interest rates on Sunday despite sharp falls in the country's currency, saying the lira's weakness did not reflect the Turkey's economic realities.

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He added: "We play against a team that invest more than us". "Forget the name, forget the history, forget the shirts. With United having established a two-goal advantage in the last seven minutes, there was no room for Martial.

"We will give our response to the person - who declares war against the whole world including our country - by turning towards new markets, new partners and new alliances", Erdogan added.

"Some close the doors and some others open new ones", he added. As long as it does not respect Turkey's sovereignty, the bilateral relationship will be in danger.

"We will say bye bye to those, who sacrifice their strategic partnership and alliance with a country of 81 million people on the altar of their relations with terror organizations", he said.

"You dare to sacrifice 81-million Turkey for a priest who is linked to terror groups?", he stressed.

Trump has described the pastor's detention as a "total disgrace" and urged Erdogan to free him "immediately".

A Turkish delegation visited Washington for talks this week but left with no signs of a breakthrough.

"Shame on you, shame on you", he said in remarks directly addressed to Washington.

As a result of US sanctions, any property or interest in property of both Turkish ministers within USA jurisdiction is blocked, and US persons are generally prohibited from engaging in transactions with them.

Tensions between Turkey and the United States have been high in recent weeks due in part to North Carolina Pastor Andrew Brunson's arrest and detention in the country.

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