(Bloomberg). — On Tuesday the Turkish lira fell to an all-time low. This was just a day after Turkish President Recep Tayyip Erdan defended lower interest rates in order to increase economic growth and create jobs.

As of 11.28 in Istanbul, the currency was 5.6% less than 12 dollars and trading at 12.0580/per. This was due to the shares of foreign-exchange earning companies.

Erdogan defends pursuit of lower interest rates as Lira Sinks

Erdogan announced Monday that Turkey abandoned policies based upon high borrowing costs and a weak currency to slow down inflation. He instead switched to a system which places greater emphasis on exports, investments and stronger job creation.

While most central banks are talking of tightening policy as the global recovery fuels a surge in prices, Turkey’s decision to slash 4 percentage points off borrowing rates since September has rattled markets and frustrated investors who complain its monetary policy is becoming increasingly erratic and unpredictable.

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