Erdoğan: Treason Is Done By High Interest Rates, Misgoverning

- President Erdoğan said, treason meant wasting labour by high interest rates and misgorverning, addressing a luncheon with governors in the presidential palace.

"They are accusing us for treason. Treason means, wasting labour by high interes rates and misgoverning" he said.

Erdoğan has been criticising the Central Bank's its monetary policy and the Governor harshly, accusing them for keeping the ratet at high levels.

His harsh critisizmhave raised concerns about the future of its governor, Erdem Başçı, as well as Deputy Prime Minister Ali Babacan, both of whom are widely respected among global market players.

Speculations about the possible resignation of both Başçı and Babacan have stirred markets for the last two days, despite the denials from several authorities.

His comments, a day after the Central Bank cut its key one-week repo rate by 25 basis points, fuelled the dollar against lira and rose over 2.5 lira on Feb 26. The dollar's rise against lira was accelerated with the US data on rising core inflation, a powerful sign for early rate hikes by the Federal Reserve.

Dollar hit new record high level today as at 2.5266 lira which eased to below 2.51 lira for a short while after the decision on forex selling amounts, but rose to just below 2.52 lira level and traded at around 2.5180 - 2.5200 lira level.