Turkish lira falls further as Erdogan stands firm on rates

ANKARA, Turkey (AP) — The Turkish currency has reached another record low against the U.S. dollar after President Recep Tayyip Erdogan stood firm on his policy to lower interest rates despite rising consumer prices. The lira tumbled to an all-time low of 18.25 against the dollar Monday. The Turkish currency has depreciated by nearly 60% against the dollar since the start of the year. Under pressure from Erdogan, the Central Bank has slashed interest rates, even though annual inflation has accelerated to 21%. Erdogan has long argued that high interest rates cause inflation, contrary to conventional economic thinking. The weakened lira is driving prices higher, making everyday goods more expensive.