Turkish Lira in Freefall After Central Bank Cuts Rates Again
- Currency extends biggest decline in emerging markets this year
- Policy makers cut the one-week repo rate by 100 basis points
A currency exchange bureau inside the Grand Bazaar in Istanbul.
Photographer: Moe Zoyari/BloombergThis article is for subscribers only.
The Turkish lira tumbled to a record low after the central bank cut borrowing costs for a third straight month, a move that risks further undermining price stability while eroding what little confidence investors had in the nation’s policy makers.
The lira fell as much as 6% to 11.3118 against the dollar, the biggest decline in eight months. Officials cut the one-week repo rate by 100 basis points to 15%, in line with the median estimate in a Bloomberg survey, and said they would consider ending the easing cycle next month.