Delivering the closing remarks at the 7th Turkish-British Tatlıdil Forum, President Erdoğan elaborated on the economic ties between Turkey and the U.K. The president recalled that during British Prime Minister May's visit to Turkey previous year, the two countries agreed to increase the bilateral trade volume to $20 billion from its current value of around $16 billion. On Wednesday it had hit a record low of 4.3780 before rebounding strongly the following day.
But economists have cautioned that a tighter monetary policy is needed for an economy whose currency has lost over 12 percent in value in the last three months and where inflation is running at 10.85 percent.
"Negotiation for maintaining and continuing JCPOA's implementation is very effective and essential for the security and stability of the region and the world", said the Turkish president, noting that the USA would be the actual loser of this decision. "Interest rates are the cause of inflation".
At the meeting, Erdogan and the economic team agreed to take measures to help shield the lira. Attendees included Turkey's central bank governor and the general managers of the largest state lenders, Ziraat Bankasi, Halkbank, and Vakifbank.
"I think, a minimum of a 200 bps rate hike and a simplification step will come at the same time".
Erdogan said a replica of an Ottoman nishan (decoration) awarded by Sultan Selim III to Britain's legendary Admiral Lord Nelson for his service during the French campaign in Egypt in 1798 was placed at the entrance of the hall where the Tatli Dil Forum was held today, showing the deep ties between the two countries.