Erdogan denies Turkey's economic problems

Turkey would not seek assistance from the International Monetary Fund, President Tayyip Erdogan said on Sunday, rejecting claims that his country is facing any worrying economic problems.

Turkey has “closed the book on the IMF, not be opened again,” Erdogan said in a speech to members of his AK Party.

Turkey’s lira took a drastic fall in value against the US dollar last month during one of the worst diplomatic rows between NATO allies Washington and Ankara. 

The US hit two Turkish ministers with sanctions over the detention of an American pastor and President Donald Trump doubled steel and aluminium tariffs on Turkey.

The Turkish currency lost nearly a quarter in value against the greenback in August.

But there had been fears over the health of the Turkish economy - which economists say is heading for a recession after a slowdown in the second quarter of 0.9 percent compared to 1.5 percent in the first quarter of this year.

There is also alarm over the direction of monetary policy under Erdogan who has railed against interest rates as "the mother and father of all evil".

Erdogan believes high rates equals high inflation, going against economic orthodoxy. But inflation continues to rise, reaching nearly 18 percent in August.

The nominally independent central bank is expected to raise interest rates in an announcement at 1100 GMT on Thursday with economists expecting a hike but not of the magnitude to satisfy the markets.

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