Turkish PM vows to continue struggle against inflation

By Sinan Uslu and Mumin Altas

ANKARA

Turkish Prime Minister Binali Yildirim on Wednesday said all government bodies are working to control the foreign exchange fluctuations.

Speaking at an iftar (fast-breaking) meal with the members of Independent Industrialists' and Businessmen's Association (MUSIAD) in Ankara, Yildirim called the foreign exchange volatility "temporary", stressing that this would not change the status of the Turkish economic growth.

“We will maintain our struggle against inflation,” he underscored.

"The free market economy will remain the same under all circumstances" he said.

Earlier on Wednesday, the Turkish Central Bank announced an increase of late liquidity window interest rates by three percentage points. The borrowing rate was kept at 0 percent while the lending rate was increased from 13.50 to 16.50 percent.

The bank's move came after the U.S. dollar/Turkish lira exchange rate hit a historic high on Wednesday, climbing to around 4.93. Following the bank's decision, the dollar/lira rate fell steeply to below 4.60.

At the beginning of the year, the USD/TRY rate was 3.78 while the average rate was 3.65 last year.