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Turkish Lira Tumbles to Record Low After Central Bank Cuts Rate

  • Currency is set for biggest annual decline since 2001 crisis
  • Bank cuts key rate to 14% and says is ending easing cycle
Customers at a currency exchange bureau on Taksim square in Istanbul.

Customers at a currency exchange bureau on Taksim square in Istanbul.

Photographer: Moe Zoyari/Bloomberg
Updated on

The Turkish lira blew past another record low after the central bank cut interest rates for a fourth straight month, a move that risks jeopardizing currency stability and stoking inflation already running at the fastest pace in three years.

The lira fell as much as 5.4% to 15.6583 against the dollar after the decision. Under pressure from President Recep Tayyip Erdogan, officials cut the one-week repo rate by another 100 basis points to 14%, in line with the median estimate in a Bloomberg survey.