The Turkish lira dropped today, reaching the all-time low versus the US dollar, as the central bank kept its benchmark Marginal Funding Rate unchanged despite mounting inflation pressure.
The Central Bank of the Republic of Turkey kept its main interest rate at 7.75 percent at today’s meeting, while some analysts have expected an increase. The central bank acknowledged that inflation will likely stay above the 5 percent target and raised interbank money market interest rates to 9 percent for additional monetary tightening days. The lira touched the historic low of 2.2691 per dollar after the announcement.
USD/TRY was up from 2.2397 to 2.2565 as of 17:39 GMT today.
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