File - Traders work on their computers at the Istanbul Stock Exchange January 2, 2012. REUTERS/MURAD SEZER
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Turkish markets turned lower Monday following Recep Tayyip Erdogan's presidential election victory, as investors weighed the economic risks associated with a likely further concentration of power in the former premier's hands.Babacan's future role is unclear, and pressure from Erdogan on the central bank to keep cutting interest rates – despite high inflation and expectations that U.S. monetary policy will soon tighten – seems unlikely to ease.The lira eased to 2.1479 against the dollar by 1443 GMT, still firmer than 2.1601 late Friday but weakening from a peak of 2.1351 in early trade reached as investors responded to the emphatic nature of Erdogan's election win.The main Istanbul share index fell 2.43 percent to 77,271 points, lagging the main emerging market benchmark which rose 1.38 percent.Erdogan has accused an "interest rate lobby" of speculators of pushing for higher rates and seeking to undermine the economy.The central bank has already cut its main one-week repo rate by 175 points since May, moves which some economists see as hard to justify given persistently high inflation.
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