Turkish lira slips further as Central Bank unlikely to raise rates
The Turkish currency dipped further Monday as few economic analysts expect the nation’s Central Bank to reverse an easing cycle that’s kept borrowing costs below inflation.
ISTANBUL — The Turkish lira continues its downward slide against major currencies, hitting record lows of 7.63 per US dollar and nearly 9 per euro as of Monday afternoon. The losses come ahead of a highly anticipated Central Bank meeting Thursday in which few analysts expect policy-makers to reverse an easing cycle that’s kept borrowing costs below inflation.
The lira has lost about 21% of its value against the dollar this year as the COVID-19 pandemic continues to impact economies around the world. To date, the Central Bank has resisted pressure to raise key interest rates, instead utilizing “backdoor” tightening policies that have raised weighted-average borrowing costs for funding.
