Turkish lira sinks further with Erdogan’s latest rate cut
Ankara’s controversial economic policy coupled with external forces portend a continuing deprecation of the Turkish lira that will only worsen inflation and other economic parameters.
Turkey’s Central Bank lowered its policy rate by 100 basis points to 14% Thursday, delivering a fourth cut in as many months in line with President Recep Tayyip Erdogan’s unconventional view that high interest rates cause high inflation, even as prices continue to soar amid the ongoing freefall of the Turkish lira.
In a sign of deepening mistrust in Ankara’s economic management, the lira tumbled past 15 versus the dollar Thursday, hitting record lows. The currency was already in a tailspin in anticipation of the rate cut, losing some 10% of its value this week alone.
