market-update No. 79-2021 Turkish sultanas new crop
2021-10-25 | Turkish lira in free-fall after mega interest rate cut in Turkey
In September, the central bank had already shocked the markets when it surprisingly lowered the key interest rate from 19 to 18 percent. Now pessimists expected another 100 basis points. But again, the central bank surprised the foreign exchange market: it lowered the key interest rate by 200 basis points to 16 percent. The Turkish lira came under considerable pressure after the significant interest rate cut and fell to new all-time lows against the US dollar and the euro.
In September, the central bank had already shocked the markets when it surprisingly lowered the key interest rate from 19 to 18 percent. Now pessimists expected another 100 basis points. But again, the central bank surprised the foreign exchange market: it lowered the key interest rate by 200 basis points to 16 percent. The Turkish lira came under considerable pressure after the significant interest rate cut and fell to new all-time lows against the US dollar and the euro.