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S&P Cuts Turkey Outlook to Negative on Lira Dive, Inflation

  • Currency has tumbled in wake of central bank rate cuts
  • S&P says currency slide, inflation may lead to bigger deficit
Turkish Economy as Lira Reels from Erdogan's Central Bank Cuts
Photographer: Moe Zoyari/Bloomberg

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S&P Global Ratings lowered the outlook on Turkey’s sovereign credit rating to negative, citing the lira’s recent weakening and rising inflation that the credit assessor says poses risks to the country’s “externally leveraged economy.”