Contrary to expectations, the Turkish Central Bank decided on Thursday, August 18, to cut the interest rate on the lira during the week (Repo) to 13% from 14%, even though the inflation rate in the country is close to 80%.<\/p>\n\n\n\n
Over the past seven months, the Turkish Central Bank has pursued a policy of maintaining the interest rate at 14%. The decision to reduce the rate to 13% was contrary to what other central banks are doing worldwide.<\/p>\n\n\n\n
Following the Turkish interest rate cut, the US dollar rose against the Turkish lira by 1% to 18.1 per dollar.<\/p>\n\n\n\n
Turkey’s inflation rate for July rose 79.6% year-on-year, its highest level in 24 years, as the country struggles with rising food and energy prices.<\/p>\n\n\n\n
The Turkish Central Bank raised its forecast for inflation in 2022 to 60.4%, up from 42.8% expected last April.<\/p>\n\n\n\n
After several attempts for a month, the Turkish lira tried to consolidate below the levels of the 18 lira dollars, which most market analysts see as important support levels without breaking the lira contract.<\/p>\n\n\n\n
During these moments of trading today, Thursday, the Turkish lira fell within the range of 1%, down to levels near 18.1488\/dollar, compared to levels of 17.9382 liras dollars before the central decision.<\/p>\n","protected":false},"excerpt":{"rendered":"
Contrary to expectations, the Turkish Central Bank decided on Thursday, August 18, to cut the interest rate on the lira during the week (Repo) to 13% from 14%, even though the inflation rate in the country is close to 80%. Over the past seven months, the Turkish Central Bank has pursued a policy of maintaining …<\/p>\n","protected":false},"author":9,"featured_media":34416,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[8473,6987,8494,7095],"class_list":["post-70407","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-consumer-inflation","tag-inflation","tag-inflationary-pressures","tag-turkey"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/70407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=70407"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/70407\/revisions"}],"predecessor-version":[{"id":70408,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/70407\/revisions\/70408"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/34416"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=70407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=70407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=70407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}