full screen background image
Tuesday 16 July 2019
  • :
  • :

Forex – Turkish Lira Rallies After Central Bank Hikes Rates To 24%

Forex9 hours ago (Sep 13, 2018 07:23AM ET)

Turkish Lira Rallies After Central Bank Hikes Rates

Investing.com – The Turkish lira rallied on Thursday after the country’s central bank raised interest rates much more than expected.

The Central Bank of Turkey increased the one-week repo rate by 625 basis points to 24%, more than analyst expectations for a hike of 425 basis points to 22%.

The bank’s decision was announced hours after Erdogan triggered tumult by repeating his hostility to higher borrowing costs and issuing an order that limited the use of foreign currency in domestic transactions.

The lira rose after the decision and was trading 2.9% higher at 6.1586 per dollar at 7:20AM ET (1020GMT).

The rate hike came alongside a pledge by the bank to enact strong monetary tightening in order to support price stability.

“If needed, further monetary tightening will be delivered,” the bank said in a statement.

The lira has lost around 40% in value against the dollar since the start of the year, thanks to investor fears over the central bank’s independence and a diplomatic and trade fight between Turkish President Recep Erdogan and Washington.

Forex – Turkish Lira Rallies After Central Bank Hikes Rates To 24%

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.