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Without Central Bank’s rate hike, Russia would have had Turkey's predicament, says Putin

The Turkish lira has seen a collapse, falling almost one-third against the dollar compared with the beginning of the year in just November

MOSCOW, December 23. /TASS/. Without the Russian Central Bank’s key rate hike, the situation in the country could be "like in Turkey," Russian President Vladimir Putin said at his annual press conference on Thursday.

"I know that the real sector is not satisfied with the increase in rates, but without it, we could have a situation similar to that in Turkey," he said, adding that "it is a serious issue, a serious challenge." "This instrument should be used cautiously, but the Central Bank is independent in pursuing its policy. You may consider it strange but I do not interfere in the work of the Central Bank, though I assess it positively," Putin noted.

The Turkish lira has seen a collapse, falling almost one-third against the dollar compared with the beginning of the year in just November. Experts consider it to be the result of the policy of the country’s Central Bank, which is believed to continue reducing the interest rate under pressure from the authorities. In particular, last week it cut one of the key rates at weekly repo auctions from 15% to 14%.