Turkish Lira Falls After Central Banks Keep Rates on Hold

The Turkish lira fell against the US dollar today even though the nation’s central bank maintained its tight monetary policy.
The Central Bank of the Republic of Turkey left its interest rates unchanged at today’s meeting, including the Marginal Funding Rate that was kept at 10.75 percent. The central bank said regarding its plans for the future:

Future monetary policy decisions will be conditional on the inflation outlook. Taking into account inflation expectations, pricing behavior and the course of other factors affecting inflation, the tight monetary policy stance will be maintained.

Some analysts think that the bank is waiting for the US Federal Reserve to make its move as well as for the outcome of the November elections in Turkey.
USD/TRY rose from 2.9006 to 2.9039 as of 12:37 GMT today.

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