Turkish Lira Plummets to Record Low As Rate-Cut Tensions Build

Published December 16th, 2021 - 08:06 GMT
Turkish Lira Plummets to Record Low As Rate-Cut Tensions Build
Given the current circumstances, economists expect inflation to surge to near 30% in 2022 due to soaring import prices. (Shutterstock)

The Turkish lira plunged to an all-time low beyond 15 against the dollar on Thursday as traders braced for another expected interest rate cut by the central bank.

The lira weakened as much as 3.1% to 15.25 and was trading at 15.2 at 07:01 GMT. 

The central bank is expected to reduce the one-week repo rate by 100 basis points to 14% on Thursday despite the inflation skyrocketing above 21% in November, the fastest pace in three years.

Turkey's central bank have slashed its key rate by 400 basis points to 15% since September under President Recep Tayyip Erdogan’s plan for looser monetary policy to help boost growth and create jobs.

Given the current circumstances, economists expect inflation to surge to near 30% in 2022 due to soaring import prices.


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