Turkish Lira Resumes Historic Tumble After Erdogan Praises Rate Cut

The Turkish lira was sent into a further free-fall on Tuesday, after President Recep Tayyip Erdogan praised the central bank’s commitment to slashing interest rates in an effort to spur economic growth.

The lira fell to a record-low of 12.80 against the US dollar on Tuesday, significantly lower than last week’s barrier of 11 against the greenback. The latest sell-off comes after Erdogan glorified the central bank’s latest cut on borrowing costs, despite the country’s inflation rate nearly hitting 20% last month. Turkey’s currency has been in a downward spiral since the beginning of 2019, when the country’s policy makers embarked on an unorthodox move to make interest rates the enemy.

Erdogan has long been a proponent of zero interest rates, as he believes borrowing costs actually raise inflation rather than lower it. However, with price pressures well in the double-digits, the country’s citizens have faced soaring household costs and devalued salaries as a result.


Information for this briefing was found via Reuters. 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.

Video Articles

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Resources Intersects Further Mineralization At El Cura, Expanding Deposit

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

Related News

Canadian CPI Slows to 7.6% in July… But Only Because of Lower Gasoline Prices

Hurrah! Canadians are finally getting a break from surging consumer prices, as the latest CPI...

Tuesday, August 16, 2022, 11:26:15 AM

US Consumer Prices Rise 3% In June

After rising 4% year-over-year in May, US inflation continued its descent last month, increasing 0.2%...

Wednesday, July 12, 2023, 08:37:13 AM

Turkey’s Inflation Seen To Breach 80% After Authorities Hike Electricity, Gas Prices By 50%

After notching a staggering 79.6% annual inflation in July, Turkish authorities raised electricity and natural...

Thursday, September 1, 2022, 10:14:00 AM

Bank of Canada Delivers 75 Basis-Point Hike, Vows to Continue Raising Rates as Inflation Becomes Entrenched

What likely is not a surprise to markets anymore, the Bank of Canada raised borrowing...

Wednesday, September 7, 2022, 11:08:37 AM

Inflation Expectations at Canadian Businesses Soar to Record-High

Despite consistent reassurance from Bank of Canada policy makers that price pressures are merely transitory,...

Thursday, August 26, 2021, 12:02:09 PM