The Turkish lira sank further on Thursday as the central bank slashed interest rates for the third consecutive month following pressure to do so from President Recep Tayyip Erdogan.
© Andreas SOLARO
Turkish President Erdogan believes high interest rates raise inflation — the exact opposite of conventional economic theory
© Ozan KOSE
The lira, the worst performing emerging market currency in 2021, sank to an all-time low ahead of the central bank announcement
The bank cut its policy rate from 16 to 15 percent despite rising inflation and a fast-depreciating currency.
The lira, the worst performing emerging market currency in 2021, sank to an all-time low of 10.98 against the dollar ahead of the announcement.
It was later trading at 10.84 lira against the dollar.
The bank decision was delayed five minutes for an unspecified reason.
“Just a pretty ludicrous move,” BlueBay Asset…