Turkey’s currency tanked to trade at a record low against the US dollar on Thursday as the nation’s central bank cut interest rates again, despite higher inflation.
- The central bank of Turkey cut its key interest rate by 100 basis points, to 15% from 16%, in line with market estimates.
- On Thursday, the lira fell to 10.97 against the US dollar before recovering slightly before the central bank’s meeting.
- The currency has now lost around 8% of its total value since Monday, as Mr. Erdogan emphasized a demand for lower rates as part of his strategy to boost economic growth.
- The currency’s drop is the recent turbulence to strike the Turkish economy after years of Mr. Erdogan continuously hiring central bank officials who support his push for lower interest rates.
The bank is anticipated to further lower rates on Thursday after the Turkish President again demanded reduced interest rates.
TRY USD down -2.34%Source: The Wall Street Journal