Turkish lira plummets on expectations of a rate cutReuters, ISTANBULThe Turkish lira yesterday crashed as much as 7 percent in just a few minutes to a new record near 15 to the US dollar, gripped by worries over Turkish President Tayyip Erdogan’s risky new economic policy and prospects of another interest rate cut on Thursday. The central bank had previously kept the lira below the 14.0 level, intervening in the foreign exchange market three times in the past two weeks by selling US dollars. The lira slid as far as 14.99 against the US currency, losing 7.3 percent of its value since Friday’s close of 13.889. Turkey’s central bank is expected to cut its policy rate by 100 basis points to 14 percent this week, a Reuters poll showed on Friday, despite inflation soaring to 21.3 percent last month. Investors and savers are concerned about recent aggressive monetary easing under which the central bank has slashed its policy rate by 400 basis points since September last year.

Source: Taipei Times December 13, 2021 19:00 UTC