“Increase in inflation in November has been driven by developments in exchange rates and supply side factors such as the rise in global food and agricultural commodity prices, supply constraints, and demand developments,” the bank’s Monetary Policy Committee said. The decision was in line with President Recep Tayyip Erdoğan’s policies, who has been pressing for low borrowing costs to boost growth, exports and investments, Turkish daily Hurriyet reported on Thursday.
Erdoğan’s policy of dropping interest rates to encourage borrowing and spending has increasingly put pressure on the Turkish Lira.
On Friday, Kibris Postasi reported that the Turkish Lira had fallen yet again to 21.65 against Sterling, which is widely used in real estate and car purchases and sales in North Cyprus, the US dollar, which greatly influences the prices of technical devices in North Cyprus, is hovering at around 16.20 TL.
Meanwhile, the Euro is trading at 18.40 TL.