Central Banks

Turkey Delivers Shock Rate Cut Despite Inflation; Lira Plunges

Central bank lowers benchmark after holding it since December
Economists expected no change, but Erdogan promised rate cuts

A currency exchange bureau in Istanbul.
Photographer: Erhan Demirtas/Bloomberg

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By Beril Akman and Tugce Ozsoy

August 18, 2022 at 11:00 AM UTC

Updated on

August 18, 2022 at 12:23 PM UTC

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Turkey’s central bank delivered a shock cut to interest rates despite inflation soaring to a 24-year high and the lira trading near a record low. The currency weakened sharply.