Turkish Lira Continues The Downturn.
London, Tuesday, 20 December 2022
Thanks to the central bank's unconventional rate-cutting policy amid a backdrop of skyrocketing prices and trade deficits, the Turkish lira has been trading around 18.6 to the US dollar since October, the lowest level on record.
Since September 2021, TCMB has lowered its key rate by 1000 basis points in response to President Erdogan's call for increased exports and industrial growth.
When the central bank decides on monetary policy on Thursday, it's anticipated that it will complete the cycle of rate cuts this month and leave interest rates steady. Turkey's annual inflation rate decreased to 84.4% in November from 85.5% in October for the first time in 18 months.
According to the Survey of Market Participants' results for November, inflation expectations rose for the near term by 0.13 points to 37.47% but fell for the two years ahead by 0.41 points to 20.76%.
(Report by: The Decision Maker - Finance editors)