Turkish finmin briefs banking association, others on new economic model

The lira hit a new low beyond 17 against the U.S. dollar on Friday after fears of an inflationary spiral mounted, brought on by President Tayyip Erdogan's new policy in the face of soaring prices. "Our banks will continue to use their resources to meet the financial needs of households and the real sector, within the free-market mechanism that operates with its rules," the banking association said in a statement.

Finance Minister Nureddin Nebati briefed Turkey's banking association, the BDDK banking watchdog and state bank managers on the government's new low-rates economic model, the association said on Saturday, after the lira currency sank to record lows. The lira hit a new low beyond 17 against the U.S. dollar on Friday after fears of an inflationary spiral mounted, brought on by President Tayyip Erdogan's new policy in the face of soaring prices.

"Our banks will continue to use their resources to meet the financial needs of households and the real sector, within the free-market mechanism that operates with its rules," the banking association said in a statement. It said the goal of the meeting was to discuss "healthy, consistent growth".