Lira Tumbles to Record Low After Central Bank Cuts Rates Again

A customer exchanges U.S. dollars at a currency exchange bureau in Istanbul.

Photographer: Moe Zoyari/Bloomberg
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The Turkish lira fell to a record low after the central bank cut its key interest rate for a second straight meeting despite the deteriorating inflation outlook.

The lira slumped more than 2% to 9.4867 per U.S. dollar. The Turkish central bank reduced the one-week repo rate by 200 basis points to 16%. The median estimate in a Bloomberg survey was for a 100-basis-point cut.