Turkish President Recep Tayyip Erdogan has continued to campaign for interest rate cuts in Turkey despite runaway inflation.

“This government will not raise interest rates.

We will lower them further," Erdogan said in Ankara after the weekly cabinet meeting.

The Turkish head of state is once again making a clear statement in favor of interest rate cuts and thus further speaking out against the general doctrine that high inflation must be combated with interest rate hikes.

Turkey has been suffering from high inflation for months.

The inflation rate last rose to 73.50 percent in May.

The central bank set the key interest rate at 14 percent in the same month.

The Turkish central bank has kept the key interest rate stable at this mark since the beginning of the year, after cutting it sharply last year.

Erdogan's statements initially did not result in any price reactions on the foreign exchange market.

The Turkish lira was under pressure in trading against the US dollar and the euro, but did not extend the losses further.