USD/TRY: Erdoğan calls for interest rate cuts to solve inflation problem as the Turkish Lira falls

Turkey's President Recep Tayyip Erdoğan has called to cut interest rates. He warns that the inflation problem will continue if rates remain at higher levels. Erdoğan has been staunchly opposed to raising rates.

The Central Bank of Turkey's one-week repo auction rate stands at 24%. The CBRT left it unchanged at its March 6th meeting after conducting a steep hike to this level earlier in the year despite the President's wishes. 

As of February, the annual inflation rate stood at just below 20%, the lowest in six months but far above the CBRT's target of 5%.

Local elections are due in Turkey on Sunday, March 31st and the economic situation is high on the agenda. 

USD/TRY is trading at around 5.6100 at the time of writing, up around 5% on the day. Resistance is seen at 5.7200and 5.8600. Support is at 5.4600.