Turkish Removal of Hawkish Rate Pledge Worsens Lira's Plight

Turkey’s central bank dropped a commitment to deliver further monetary tightening if needed as it extended its interest-rate pause to seven months. The lira tumbled to its weakest since October.

The Monetary Policy Committee led by Governor Murat Cetinkaya tweaked its forward guidance in a statement accompanying its decision on Thursday, saying its action “will be determined to keep inflation in line with the targeted path.” The MPC kept the benchmark rate at 24 percent, in line with forecasts.