Erdoğan vows to reduce inflation and forex rates with low interest rates

Turkey's President Recep Tayyip Erdoğan said Turkey will reduce inflation and exchange rate volatility through low-interest rates, broadcaster NTV said, after the lira plunged to record lows over the central bank's aggressive easing policy demanded by the president.

Speaking to reporters on a return flight from Doha, Erdoğan repeated his opposition to high-interest rates, adding that Turkey's forex reserves were not an issue despite the central bank's market interventions last week.

He also blamed stockpiling for the surge in prices and threatened to impose more severe punishments.

"I believe we will reverse these attacks on the currency. As I always say, God willing this will also pass us by. Let everyone know this," NTV cited Erdoğan as saying.

TURKEY TO ABIDE BY COURT RULING ON JAILED BUSINESSMAN KAVALA

Erdoğan said he does not recognise European rulings seeking the release of jailed businessman Osman Kavala and former opposition HDP chief Selahattin Demirtaş and Ankara will abide by Turkish court rulings on them.

Erdoğan stressed in his comments to reporters that the European rulings on both Kavala and Demirtaş were "null and void" for Turkey.