The Turkish lira continues to record new lows day by day, as it tested this morning, Thursday, the 18th of November, levels of 10.95, two hours before the meeting of the Turkish Central Bank, with almost certainty in the markets that the bank will reduce interest rates for the third meeting in a row.
Opinion polls by Reuters and Bloomberg were similar, as the majority of those surveyed believe that the bank will reduce interest rates by 100 basis points to reach 15% after cutting them by 100 basis points on the 23rd of September and then by 200 basis points on the 21st of last October.
Turkish President Recep Tayyip Erdogan’s statements during the ruling Justice and Development Party’s meeting in Parliament yesterday, Wednesday, came as an additional factor pressing the Turkish lira, as Erdogan pledged to fight to reduce interest rates, stressing that interest is the main cause of inflation.
The Turkish lira has fallen by more than 30% this year, including declines by more than 11% in November only, to top the weakest emerging currencies in terms of performance, and interest rates have been reduced twice in a row and are on their way to a third reduction, but inflation rates are still close to 20% levels At the last reading in October, four times the bank’s target.
05/11/2024
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