Turkish central bank urged to cut rates

ANKARA, June 23 (AFP): Turkey's economy minister called on Monday for a sharp rate cut a day before a meeting of the central bank.
"I don't think anybody in Turkey will want high interest rates," Nihat Zeybekci said.
"We expect the interest rates to be lowered as soon as possible" to the level before the big rate increase in January, he added.
The central bank aggressively raised key rates in January in a bid to halt a steep drop in the country's national currency the lira.
The overnight lending rate was set at 12.0 per cent, while the borrowing and one-week repo rates were at 8.0 per cent and 10.0 per cent respectively.
Last month, the bank shaved its one week repurchase rate, used by commercial banks for short-term funding, from 10.0 per cent to 9.5 per cent.
But it was criticised for being timid by Prime Minister Recep Tayyip Erdogan who accused the bank of "kidding the nation".
Turkey's central bank, statutorily independent, is under pressure from Erdogan's government to reduce rates in order to boost growth.
Last week, the bank's governor hinted that another small cut in interest rates was likely at Tuesday's meeting.