ANKARA, Turkey (AP) — The Turkish lira has dipped to new record lows after President Recep Tayyip Erdogan rattled investor confidence by saying he had spoken to the central bank governor about the need to lower interest rates. The currency weakened around 3% early Wednesday to 8.8 against the dollar, before recovering some ground. Erdogan told state broadcaster TRT that it was “imperative” that interests rates are lowered to fight inflation and that he had discussed the issue with bank chief. Typically, higher interest rates shore up a currency and help combat inflation. Erdogan however, has argued the contrary, that high rates cause inflation.
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