Report

rss

Iraq News

Kurdistan

Economy

World

All News

Turkish lira notches more record lows on rate-cut concerns

Category: Economy

Date: 2021-10-15T12:50:12+0000
Turkish lira notches more record lows on rate-cut concerns

Shafaq News/ Turkey's lira touched new lows against the dollar and euro on Friday, hamstrung by worries over more interest rate cuts despite high inflation, after President Tayyip Erdogan dismissed three central bank policymakers.

Two of the three monetary policy committee (MPC) members ousted on Thursday were seen to oppose the bank's 100 basis-point rate cut to 18% last month, and their dismissal clears the way for more policy easing as soon as next week.

A survey by the central bank showed market participants expected the rate to hit 16.6% in three months, representing cuts of 140 basis points, while inflation expectations rose.

The lira lost as much as 0.5% to hit an all-time low of 9.24 against the U.S. currency. It stood at 9.2380 at 0935 GMT and has weakened more than 19% so far this year.

It also touched a record 10.7235 against the euro, according to Reuters.

Analysts viewed the latest central bank personnel changes as fresh evidence of political interference by Erdogan, a self-described enemy of interest rates who frequently calls for monetary stimulus.

The bank's next policy meeting is on Oct. 21.

According to initial results of a Reuters poll, most economists expect a rate cut next week and some may respond to the MPC shakeup by predicting a more aggressive easing.

related

Turkish lira rebounds from record low despite policy worries

Date: 2021-11-24 16:53:11
Turkish lira rebounds from record low despite policy worries

Turkish lira weaker a day before crucial rate decision

Date: 2020-11-18 10:14:32
Turkish lira weaker a day before crucial rate decision

Turkish lira charges back after Erdogan's anti-dollarization plan

Date: 2021-12-21 09:14:20
Turkish lira charges back after Erdogan's anti-dollarization plan

Turkish lira slides on rate cut fears; EM stocks retreat

Date: 2021-08-05 09:22:04
Turkish lira slides on rate cut fears; EM stocks retreat

Turkish lira skids again after Erdogan orders manipulation probe

Date: 2021-11-29 08:51:30
Turkish lira skids again after Erdogan orders manipulation probe

Turkish lira slightly weaker ahead of central bank rate decision

Date: 2020-12-24 07:04:43
Turkish lira slightly weaker ahead of central bank rate decision

Turkish Lira crisis boosts real estate market for foreigners; Iraqis has the lion's share

Date: 2021-12-27 07:56:46
Turkish Lira crisis boosts real estate market for foreigners; Iraqis has the lion's share

Turkish lira weakens to a new record low

Date: 2021-10-13 18:38:05
Turkish lira weakens to a new record low