Turkey’s central bank cuts rates amid record lira drop

Photo: Anadolu

Central Bank of Turkey decides to cut interest rate at weekly repo auctions

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After the announcement of the rate cut, the lira has renewed another record – 15.60 lira per $ 1, although it was trading at 15.21 this morning.

The central bank of Turkey has cut its key rate from 15% to 14%. This was reported by TASS on Thursday, December 16.

We are talking about lowering the rate at weekly repo auctions – a short-term loan secured by securities. This decision was made today by the Board of the Central Bank. The rest of the rates remained unchanged.

“The repo rate is considered a” political rate “and one of the key indicators that affects the value of the national currency and inflation,” the message says.

The decision to cut the rate was made against the backdrop of a sharp collapse in the value of the Turkish lira, which in recent days has been hitting historical records for depreciation in relation to other currencies. After the announcement of the rate cut, the lira has renewed another record – 15.60 lira per $ 1, although it was trading at 15.21 this morning. The euro is trading at 17.36.

Recall large-scale currency crisis in Turkey… The fall of the Turkish national currency is so rapid that trade does not have time to adapt to new prices and goods disappear from stores. Experts associate the financial crisis in Turkey with the personal decisions of President Recep Erdogan. Correspondent.net spoke in detail about the reasons the current crisis in Turkey.

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