Turkish lira tumbles by 1% as central bank cuts key interest rate

Turkish consumers already struggle with high inflation and spiralling energy and food prices

Turkey's Central Bank headquarters is seen in Ankara, Turkey

Turkey's Central Bank headquarters is seen in Ankara, Turkey

IANS Ankara
The Turkish lira weakened by as much as 1 per cent against the US dollar after the country's central bank decided to lower its benchmark interest rate.
The bank in Ankara announced on Thursday that the key rate would drop to 13 per cent from previously 14 per cent, reports dpa news agency.
The lira fell past 18.1 versus the dollar.
The central bank has not raised its benchmark rate since December 2021 following a round of controversial rate cuts, in line with President Recep Tayyip Erdogan's demands.
The Turkish currency has been steadily losing in value for almost three years after Erdogan openly pressured the central bank to pursue his unorthodox theory that higher interest rates cause higher inflation.
Turkish consumers already struggle with high inflation and spiralling energy and food prices.
--IANS
ksk/
 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 19 2022 | 10:09 AM IST

Explore News