Skip to content
Subscriber Only

Lira Slumps as Turkey Rate Hike Falls Short of Expectations

  • Central bank lost opportunity to check speculation: Rabobank
  • 10-year bond falls after rate lifted by 50 basis points
Updated on

Turkey’s lira headed for its biggest loss against the dollar in more than a month and bonds fell after the central bank raised a key rate less than expected.

The lira fell as much as 2.1 percent and the yield on the nation’s 10-year bond yield headed for a two-week high after policy makers raised the rate on the so-called late liquidity window by 50 basis points, compared with expectations for a 100-basis point increase. Policy makers left all other rates unchanged.