UPDATE (TL slump) CBRT cuts interest rates by 100 basis points

AP: Turkish lira dips to new low after another interest rate cut

The Turkish lira hit a historic low of 15.28 against the U.S. dollar early Thursday amid the prospect of a new rate cut and then extended its losses following the decision. The lira was trading at 15.60 against the dollar, 5% weaker from Wednesday’s close.

The Turkish currency has lost about half of its value since the start of the year.

The bank has intervened four times in recent weeks by selling off foreign currency in a bid to prop up the lira, but the action has failed to stop its depreciation.

Soaring consumer prices and the falling value of the lira have left many people struggling to make ends meet. Long lines have been forming outside of municipality-run kiosks selling bread at discounted prices.

The leaders of two opposition parties have accused Erdogan of severe mismanagement of the economy and have called for early general elections. Erdogan insists that elections will be held in 2023 as scheduled.

In Asia trading dollar/TL rose further to 15.67-68

Turkish cenbank cuts rates despite lira crash  by 100 basis points to 14%. 

Turkish Central Bank on Dec. 16 has lowered 1-week repo rate by 100 basis points to 14%, in accordance with the market expectations.

The Turkish central bank blamed consumer price increases on “developments in exchange rates and supply side factors such as the rise in global food and agricultural commodity prices, supply constraints, and demand developments.”

It said it would reassess “all aspects of the policy framework” over the first three month of 2022.