Turkey’s central bank needs to raise interest rates to contain the country’s financial crisis, veteran economist Stephen Roach told CNBC on Monday.

Earlier in the day, Turkish lira dropped to a new all-time low of 7.24 against the U.S. dollar. It later pared some of those losses to trade around 6.99.

“The markets clearly want much more decisive action,” said Roach, former chairman of Morgan Stanley’s operations in Asia.

However, Turkish President Recep Tayyip Erdogan “is not about to do that both in terms of policy as well as rhetoric,” he said on “Power Lunch.”

Roach, now a senior fellow at Yale University, believes what Turkey needs is “a really large and strong monetary tightening.”

Last week, the economic crisis engulfing Turkey deepened after President Donald Trump said he was doubling metal tariffs on the country. His remarks came after Erdogan asked citizens to convert their dollars and other foreign currencies and gold to lira.

After Trump’s comments, the lira briefly plunged 20 percent against the greenback on Friday, finishing the session lower by about 16 percent. On Monday, Turkey’s central bank tried to ease fears by saying it will provide needed liquidity to the country’s banks.

Roach said what’s most worrisome is not the cumulative decline in the currency but the speed of the fall.

“When you see an accelerating downfall like this met with largely incremental actions by the central bank, then you have to worry about where this is going with respect to Turkey,” he said.

Turkey’s inflation rate reached 16 percent last month, well above the central bank’s 5 percent target. While central banks generally hike rates to control inflation, Erdogan has opted to keep rates low in an effort to drive growth.

Shares in Europe open slightly higher Wednesday as concerns over the Turkish currency crisis continue to affect investors’ appetite. However, trading flows were also sluggish as a number of European bourses are closed due to a public holiday, including Italy, Greece and Austria.

The pan-European Stoxx 600 was up by 0.18 percent with most sectors trading in positive territory.

In Asian trading was mostly lower, failing to follow the positive beat on the Wall Street. Investors remain wary of potential economic spill overs from Turkey, where a spat with the United States and certain economic policies have led to a sharp fall in the value of its currency. The lira was down about 2 percent against the dollar and the euro at about 6.20 a.m. London time.

In other news, China has argued that the solar tariffs introduced by the United States on Beijing earlier this year violate trade rules and has issued a complaint at the World Trade Organization.

Meanwhile, in the corporate world, Royal Bank of Scotland has announced that it will pay $4.9 billion to settle a U.S. investigation into misconduct between 2005 and 2008. Air France-KLM is to appoint Air Canada’s chief operating officer Benjamin Smith as its new boss on Thursday, according to local newspaper Liberation.

On the earnings front, Vestas Wind and Balfour Beatty are due to announce their latest results.

In the U.K., there will be core inflation numbers out at 9.30 a.m. London time.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

Speaking at an event marking his country’s independence from Japanese rule, Moon said such a “community” could eventually herald the launch of a “multilateral security system” in the region, according to the report.

“This community will lead to an energy bloc and economic bloc in Northeast Asia by expanding our economic area to the northern continent and becoming the foundation of co-existence and prosperity in Northeast Asia,” Moon projected, according to Yonhap.

The president’s administration will seek to link railways and roads with the North before year-end, Yonhap said.

The initiative is one of many efforts that Seoul is undertaking to strengthen peace in Northeast Asia following June’s milestone U.S.-North Korea summit. Since then, the reclusive regime has dismantled some missile engine testing facilities, but many question leader Kim Jong Un’s willingness to deliver on the denuclearization promise he made to President Donald Trump.

Moon also called for broad energy and economic cooperation with the North on Wednesday, stressing his goal to politically unify both countries. “True liberation” will only be achieved when the two neighbors establish a lasting peace and economic relations, the head of state was quoted as saying.

Turkey’s central bank needs to raise interest rates to contain the country’s financial crisis, veteran economist Stephen Roach told CNBC on Monday.

Earlier in the day, Turkish lira dropped to a new all-time low of 7.24 against the U.S. dollar. It later pared some of those losses to trade around 6.99.

“The markets clearly want much more decisive action,” said Roach, former chairman of Morgan Stanley’s operations in Asia.

However, Turkish President Recep Tayyip Erdogan “is not about to do that both in terms of policy as well as rhetoric,” he said on “Power Lunch.”

Roach, now a senior fellow at Yale University, believes what Turkey needs is “a really large and strong monetary tightening.”

Last week, the economic crisis engulfing Turkey deepened after President Donald Trump said he was doubling metal tariffs on the country. His remarks came after Erdogan asked citizens to convert their dollars and other foreign currencies and gold to lira.

After Trump’s comments, the lira briefly plunged 20 percent against the greenback on Friday, finishing the session lower by about 16 percent. On Monday, Turkey’s central bank tried to ease fears by saying it will provide needed liquidity to the country’s banks.

Roach said what’s most worrisome is not the cumulative decline in the currency but the speed of the fall.

“When you see an accelerating downfall like this met with largely incremental actions by the central bank, then you have to worry about where this is going with respect to Turkey,” he said.

Turkey’s inflation rate reached 16 percent last month, well above the central bank’s 5 percent target. While central banks generally hike rates to control inflation, Erdogan has opted to keep rates low in an effort to drive growth.

Shares in Europe open slightly higher Wednesday as concerns over the Turkish currency crisis continue to affect investors’ appetite. However, trading flows were also sluggish as a number of European bourses are closed due to a public holiday, including Italy, Greece and Austria.

The pan-European Stoxx 600 was up by 0.18 percent with most sectors trading in positive territory.

In Asian trading was mostly lower, failing to follow the positive beat on the Wall Street. Investors remain wary of potential economic spill overs from Turkey, where a spat with the United States and certain economic policies have led to a sharp fall in the value of its currency. The lira was down about 2 percent against the dollar and the euro at about 6.20 a.m. London time.

In other news, China has argued that the solar tariffs introduced by the United States on Beijing earlier this year violate trade rules and has issued a complaint at the World Trade Organization.

Meanwhile, in the corporate world, Royal Bank of Scotland has announced that it will pay $4.9 billion to settle a U.S. investigation into misconduct between 2005 and 2008. Air France-KLM is to appoint Air Canada’s chief operating officer Benjamin Smith as its new boss on Thursday, according to local newspaper Liberation.

On the earnings front, Vestas Wind and Balfour Beatty are due to announce their latest results.

In the U.K., there will be core inflation numbers out at 9.30 a.m. London time.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

With Sino-American trade tensions escalating, China’s cybersecurity standards could be used as an “invisible tool” for retaliating against Washington’s tariffs, according to one expert.
Such standards are government-issued operational guidelines that are technically voluntary, but are oftentimes treated as mandatory by foreign firms’ Chinese business partners.
If Asia’s largest economy were to weaponize the listing of standardized practices to hit American companies, the cost would be difficult to quantify, but the move’s effects on foreign firms could outlive current tensions, according a report from a Washington-based think tank.

Speaking at an event marking his country’s independence from Japanese rule, Moon said such a “community” could eventually herald the launch of a “multilateral security system” in the region, according to the report.

“This community will lead to an energy bloc and economic bloc in Northeast Asia by expanding our economic area to the northern continent and becoming the foundation of co-existence and prosperity in Northeast Asia,” Moon projected, according to Yonhap.

The president’s administration will seek to link railways and roads with the North before year-end, Yonhap said.

The initiative is one of many efforts that Seoul is undertaking to strengthen peace in Northeast Asia following June’s milestone U.S.-North Korea summit. Since then, the reclusive regime has dismantled some missile engine testing facilities, but many question leader Kim Jong Un’s willingness to deliver on the denuclearization promise he made to President Donald Trump.

Moon also called for broad energy and economic cooperation with the North on Wednesday, stressing his goal to politically unify both countries. “True liberation” will only be achieved when the two neighbors establish a lasting peace and economic relations, the head of state was quoted as saying.