The Turkish lira hit a new all-time low this week after the country's central bank cut interest rates once again, and experts believe the time for extraordinary interest rate hikes is fast approaching. However, President Recep Tayyip Erdogan continued to defend the path he took and rejected the idea of higher interest rates. "I reject policies that will shrink our country, weaken it, doom our people to unemployment, hunger and poverty,"he told reporters. Three governors of the Turkish Central Bank have been fired since mid-2019, but interest rates continue to fall. The pound depreciated on Tuesday when it fell 15%. However, the International Monetary Fund (IMF) forecasts show that gross domestic product (GDP) will increase by 9% this year. The level of government debt to GDP is 40%, which is better than other economies of similar size. However, experts say currency instability could have a strong impact on economic development.
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