Turkish lira stabilizes after its decline with shock of interest rate cut

The Turkish lira stabilized against the dollar on Friday, after approaching record lows in the previous session, as the Turkish Central Bank shocked markets by cutting its interest rate to 13 percent.

The Turkish lira stabilized against the dollar on Friday, after approaching record lows in the previous session, as the Turkish Central Bank shocked markets by cutting its interest rate to 13 percent.

By 0438 GMT, the currency was flat at 18.1, almost unchanged from Thursday’s close when it briefly reached 18.15, its weakest since Dec. 20, after the surprise rate cut.

Advertisement

Turkey’s central bank cut the interest rate by 100 basis points, saying it needs to continue to drive economic growth despite inflation rising to nearly 80 percent and a global trend among other central banks to tighten policies. This is the first time the Turkish central bank has moved rates since, At the beginning of this year, it remained stable at 14 percent over the past seven months, despite the acceleration of inflation rates to its highest level in nearly 24 years.

Very loose monetary policies and high food and energy costs led to an increase in inflation rates in Turkey and a severe weakness in the currency, which fell this year by about 26 percent, after it fell 44 percent last year following unconventional interest rate cuts to become one of the worst-performing currencies in the markets. Emerging.

The interesting cut in Turkey yesterday comes in the opposite direction to the moves of most major central banks that raise interest rates at high rates in order to curb inflation. Contrary to classical economic theories, Turkish President Recep Tayyip Erdogan believes that high-interest rates increase inflation.

Tariq Saeed

Read More

Saint Lucia: Deputy PM Ernest Hilaire expresses joy to celebrate 44th Independence Anniversary

Saint Lucia: The Deputy Prime Minister of Saint Lucia, Ernest Hilaire, has recently shared an update regarding his participation in the celebration event held in the District Four area following the forty-fourth (44th) Independence Anniversary of Saint Lucia. During the event, he was joined by the District Education Officer, teacher and students.

Rescue operations continue in Oman for people who went missing due to floods

Rescue authorities in Oman persist in their search on Sunday, July 10, for people who went missing after days of heavy rainfall causing floods.

Doha Expo is all set to Host “Hosh Al Bayt” event today night

"Hosh Al Bayt" famous traditional Music performance of Qatar will be held today night at the Doha Expo 2023.

Recent

Dubai: Museum of the Future merges education, entertainment to encourage kids to partake in beneficial activities

The Museum of the Future is merging education and entertainment to motivate young visitors to engage in beneficial activities at Dubai's iconic architectural marvel on its dedicated kids' floor, along with giving them the building blocks to be the future heroes of the city.

Unprecedented Rainfall Grips UAE: Residents Hunker Down as Orange Alert Signals Storm Surge

Reports of heavy rainfall and lightning in Dubai as early as 2:35 am underscored the relentless nature of the storm, urging residents to exercise utmost caution and vigilance

Dubai Court jails & fines Dh 5,000 to woman for stealing from mall

On Friday, the Dubai Misdemeanour Court has jailed and fined a 46-year-old woman Dh 5,000 for stealing from a mall in the emirate. The...
admin

503 Service Unavailable

503

Service Unavailable

The server is temporarily busy, try again later!