Lira Swings as Central Bank Unexpectedly Leaves Rates Unchanged
- Currency sank to record this week after seven months of cuts
- Comments from president’s aides had signaled decision
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Turkey’s lira reversed losses and government bonds extended their gains after the central bank kept interest rates on hold, defying expectations for a cut.
The lira swung between gains and losses before trading 0.1 percent higher at 3.0580 per dollar at 6:07 p.m. in Istanbul while the yield on 10-year government bonds fell 14 basis points to 9.77 percent. Policy makers left all three of the nation’s main interest rates unchanged on Thursday, citing weakness in the lira and other “cost factors.” Economists surveyed by Bloomberg had forecast a 25 basis-point cut to the overnight-lending rate.