Saturday, May 31, 2025

Latest

Turkish Lira Plummets to New Low After Central Bank Slashes Rates Again

The Turkish lira fell to the lowest on record, after the country’s central bank once again slashed interest rates amid mounting pressure from President Recep Tayyip Erdogan.

In an effort to make mock of monetary policy, the Turkish central bank has for a third straight month cut its one-week repo rate by 100 basis points to 15%, in line with estimates put out by economists polled by Bloomberg. The Monetary Policy Committee made the unorthodox move following renewed pressure from Erdogan, despite inflation nearing almost 20% in October.

Since the beginning of September, the central bank has slashed interest rates by 400 basis points, pushing the lira’s real yield far below zero. The ultra-dovish monetary landscape has made the country’s currency susceptible to further gains in Treasury yields and the US dollar, just as the Federal Reserve mulls pulling back its quantitative easing support ahead of schedule.

Since the beginning of September, the lira’s value against the dollar has fallen by one-third, and is slated for its ninth year of losses. In fact, since September alone, the lira has lost 20% once the central bank started cutting rates.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Ray Dalio: Digital Yuan Will be More Competitive Than Digital Dollar as US Debt Levels Surge

According to Ray Dalio, China’s growing dominance in the global economy will put the yuan...

Tuesday, June 1, 2021, 03:22:00 PM

Is Turkey’s Currency About to Collapse?

Turkey’s central bank has announced tighter regulations on credit card spending and efforts to boost...

Monday, March 18, 2024, 01:08:00 PM

Global Reserve Managers Flock to US Dollar, Yuan Demand Stalls: OMFIF Survey

The Official Monetary and Financial Institutions Forum (OMFIF) this week released a survey that revealed...

Friday, June 7, 2024, 03:44:00 PM

Argentina: Newly-Elected President Javier Milei Promises To Dollarize Economy

Javier Milei secured victory in Argentina’s presidential elections, signaling a shift to the right amid...

Monday, November 20, 2023, 10:57:00 AM

IMF: Western Sanctions Against Russia Threaten to Weaken US Dollar

As the White House proudly pats itself on the back as its sanction list against...

Friday, April 1, 2022, 03:01:00 PM