UPDATE 1-Turkish economy minister criticises central bank lira policy
(Adds comment on central bank)
ISTANBUL, Sept 5 (Reuters) - Turkish Economy Minister Zafer Caglayan on Thursday criticised central bank dollar sales to defend the lira, saying they had failed to have a significant effect, and said he believed the bank should not hike its policy rate.
"You know that I'm allergic to rate (hikes). Let me express my opinion that there are no changes needed in the policy rate, but I am not giving orders like some people would like to understand," Caglayan told CNBC-e television.
The Turkish lira hit a new record low on Thursday amid concerns about the central bank's ability to support the currency and on worries that potential military strikes on Syria could hurt the Turkish economy.
"The central bank injected around $6 billion to the market through interventions but was only able to move the lira by 1 kurus (0.01 lira)," Caglayan said.
"I don't find the central bank's intervention correct ... there is no point in arm wrestling."
Caglayan also said the government's medium-term targets for 2013, including inflation and exports, needed to be revised. The programme's inflation target for this year is 5.3 percent.
(Writing by Ece Toksabay; Editing by Nick Tattersall)
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