Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Turkish lira weakened to new lows against the dollar on Wednesday after the central bank raised its forecast for the rate of inflation in the current and next years.
The lira recorded its lowest level ever at 8.2655 against the US currency to close at 8.1875 pounds yesterday and lost about 28% since the beginning of this year.
The central bank raised its inflation forecast to 12.1% from 8.9% today and said that an expectation that inflation would record a downward trend in the second half of the year had not materialized.
The tension in relations with the United States, the dispute with France, the dispute between Turkey and Greece over maritime rights and the battles in Nagorno Karabakh have weakened the lira.
Last Thursday, the central bank kept the key interest rate at 10.25% and raised the delayed liquidity window to 14.75%, saying that a broad tightening of financial conditions had already taken place after steps to contain inflation risks.
