Loan Digest

Lira Rally Cut Short as Traders Await Erdogan’s View on Jumbo Rate Hike

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 50%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

Turkey’s lira slumped as the euphoria surrounding Thursday’s jumbo interest-rate hike subsides, with questions arising over whether the aggressive move has the blessing of President Recep Tayyip Erdogan.

The lira weakened as much as 2.7% against the US dollar on Friday, the worst performance across emerging markets. The morning slide erased about half of the currency’s gains from Thursday.

Turkish assets rallied after the Monetary Policy Committee, with newly appointed members led by Governor Hafize Gaye Erkan, surprised investors with a bigger-than-expected increase in the benchmark one-week repo rate by 7.5 percentage points to 25%. Yet the rally may prove short lived, with investors bracing for the risk of more political meddling in monetary policy. Erdogan has chased out three central bank governors since 2019, spurring an exodus of capital that has weighed heavily on the lira.

“If in the coming days President Erdogan comments on the latest stunning decision and he strongly indicates that Governor Erkan and her team have his full support, the lira may become one of the most popular EM currencies,” said Piotr Matys, a currency analyst at InTouch Capital Markets. “At least until the Turkish president decides to reshuffle the Turkish central bank once again.”

As of 10:18 a.m. in Istanbul, the lira was trading at 26.503 against the dollar, down 2.6% on the day, on track for its worst session since June.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Turkey’s Lira Extends Rally After Central Bank’s Jumbo Rate HikeThe lira extended its rally to over 6% against the US dollar after the Turkish central bank raised interest rates far more than expected on Thursday.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Lira Rallies as Turkey Raises Rates to Near Two-Decade HighTurkey’s central bank raised interest rates far more than expected, in the first sign that a new lineup of monetary officials favors more aggressive moves to curb inflation running near 50%. The lira surged.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Turkey shocks with big rate hike to 25%, boosting liraBy Ali Kucukgocmen and Jonathan Spicer ISTANBUL (Reuters) - Turkey's central bank hiked its key interest rate by a larger-than-expected 750 basis ...
Source: SaltWire Network - 🏆 45. / 63 Read more »