Report

rss

Iraq News

Kurdistan

Economy

World

All News

Lira Tumbles to Record Low After Central Bank Cuts Rates Again

Category: Economy

Date: 2021-10-21T14:28:55+0000
Lira Tumbles to Record Low After Central Bank Cuts Rates Again

Shafaq News/ The Turkish lira fell to a record low after the central bank cut its key interest rate for a second straight meeting despite the deteriorating inflation outlook.

The lira slumped more than 2% to 9.4867 per U.S. dollar. The Turkish central bank reduced the one-week repo rate by 200 basis points to 16%. The median estimate in a Bloomberg survey was for a 100-basis-point cut.

It comes after President Recep Tayyip Erdogan fired three senior policy makers who disagreed with his calls to continue lowering borrowing costs last week, allowing him to exert greater influence on the bank.

The move puts the central bank’s one-week repo rate around 400 basis below inflation, eroding the appeal of holding the currency and leaving it exposed to shifts in global risk sentiment.

Inflation accelerated to just shy of 20% in September -- four times the official target.

The Borsa Istanbul Banks Index extended its slide to 2.6%.

Source: Bloomberg

related

Turkish lira slightly weaker ahead of key rate decision

Date: 2021-03-18 08:52:03
Turkish lira slightly weaker ahead of key rate decision

Turkish lira weakens nearly 3%, giving up Wednesday's gains

Date: 2022-01-13 08:35:35
Turkish lira weakens nearly 3%, giving up Wednesday's gains

Turkish lira at new low with little reprieve in sight

Date: 2021-10-18 16:12:34
Turkish lira at new low with little reprieve in sight

Turkish lira weakens after Fitch downgrades outlook to 'negative'

Date: 2021-12-03 11:32:32
Turkish lira weakens after Fitch downgrades outlook to 'negative'

Turkey’s Lira fell 17% After Erdogan Fires Central Bank Chief

Date: 2021-03-22 06:48:44
Turkey’s Lira fell 17% After Erdogan Fires Central Bank Chief

Turkish lira weakens for ninth day, data shows economic woes

Date: 2022-03-11 09:47:35
Turkish lira weakens for ninth day, data shows economic woes

Turkish lira drops to new all-time low after rates slashed

Date: 2021-10-22 10:47:25
Turkish lira drops to new all-time low after rates slashed

Turkish lira edges closer to record low against dollar

Date: 2021-12-10 07:42:23
Turkish lira edges closer to record low against dollar