Istanbul, July 18 (BNA): The Turkish lira fell by more than 2% to a new record high against the dollar, today, Tuesday, amid market fears that the central bank may raise interest rates this week less than previously expected.
The lira hit a record low of 26.9 against the US currency, retreating from Monday’s close of 26.3505. Reuters reported that it has doubled 30% so far this year.
According to a Reuters poll, Turkey’s central bank is expected to raise its policy rate by 500 basis points to 20% this week, fulfilling its pledge of further tightening to curb inflation, which is set to rise again.
However, senior columnist for Hurriyet newspaper Abdelkader Selvi wrote on Tuesday that his impression from “economic circles” is that the rate will rise to around 16.50-17.0%.
The central bank will announce its interest rate decision at 1100 GMT on Thursday.
In June, the central bank raised its policy rate by 650 basis points, 15%, and promised to continue tightening until there is a significant improvement in inflation expectations.
RM
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