Turkish Lira landing after raising the lending rate
Turkish central bank raised on Tuesday January 24, lending rate overnight by 75 basis points, but it kept its key interest rate unchanged.
The central bank decided at the Monetary Policy Committee meeting to raise the lending rate for one night and to 9.25% from 8.50%, and consensus decision with analysts' expectations. As proven interest on the repo rate for a week at 8%, while analysts expected the increase of 50 basis points.
Following the Turkish Central decision, the Turkish lira fell against the dollar, reaching US currency by 16:04 Moscow time (13:04 GMT), 3.7670 pounds, an increase of 0.27%.
Thus, the Turkish currency decline this year has amounted to about 8%.
And opposes Turkish President Recep Tayyip Erdogan sharply raise interest rates, it believes that the low credit would enhance economic growth in the country.
While, investors are worried about the lack of security and foggy political situation and the slowdown in the economy and fears that the central bank does not enjoy full autonomy.
Source: Fred Gaerli
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