Turkish Businessmen's Association Head Qualifies High Interest Rate As Risky

ABU DHABI - Head of a Turkish businessmen`s association said Thursday higher interest rate and lower exchange rate constituted "a risky policy instrument" for Turkey.
"Turkey`s foreign trade could have been much healthier if dollar currency settled at around 1.50," said Omer Bolat, chairman of the Independent Industrialists` and Businessmen`s Association (MUSIAD).
"Keeping higher interest rate and lower exchange rate risks sustaining healthy balances in Turkey`s economy and its foreign trade in the next three years," he told reporters on the sidelines of an international business forum in Abu Dhabi.
Bolat said, "a sharp interest rate policy" negatively affected the currency rate, accusing what he called "an interest lobby" of trying to prevent reduction in interest rates.