January 21, 2015 / 12:56 PM / 5 years ago

UPDATE 1-Turkey's Erdogan says central bank rate cut insufficient

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ISTANBUL, Jan 21 (Reuters) - Turkish President Tayyip Erdogan said on Wednesday the central bank’s 50-basis point rate cut had been insufficient and said securing investment and employment was impossible at current interest rates.

Erdogan, who has repeatedly called for looser monetary policy, told a news conference that the bank had still “not got the message” on interest rates and that he would share his views with the prime minister and relevant ministers.

“If we want investment in Turkey, if we are creating jobs, it’s not possible with this rate. This rate should go down so that there will be entrepreneurship and competition,” he said.

“(The central bank) will continue to get criticism as long as it continues to take wrong steps. My sensitivity on this issue as the president of this country will continue.”

The lira weakened slightly to 2.3444 against the dollar after his comments, from 2.3420 beforehand.

Tuesday’s cut in the main one-week repo rate, while leaving other rates on hold, had already drawn a swift rebuke from ministers who said it was not enough to support economic growth five months before a general election.

Last week, Erdogan warned he might summon central bank officials if they did not respond to his repeated calls for lower rates to boost growth.

Reporting by Humeyra Pamuk and Ece Toksabay; Writing by Daren Butler; Editing by Nick Tattersall

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