Turkish central bank cuts rates, sending lira to record low

[MongiIG]

Turkey’s central bank voted on Thursday to cut the country’s key interest rate, the one-week repo rate, to 14% from 15%, sending the lira to a new record low of 15.5 to the dollar immediately following the news.

The currency had already breached 15 to the dollar in the hours before the decision as markets anticipated a rate cut. The lira was trading at around 15.51 to the dollar just after 2 p.m. in Istanbul.

 

Inflation in the country of 84 million is now at more than 21% and has climbed steadily as President Recep Tayyip Erdogan has refused to raise rates, meaning purchasing power for Turks earning local salaries has plunged. The lira has lost 50% of its value against the dollar year to date.

Full article: CNBC

[MongiIG]