Lira Traders Say ‘We’ve Been Here Before’ in Turkey Rates Replay

Turkish President Recep Tayyip Erdogan’s demand for interest-rate cuts sent a brief shockwave through the lira, with the currency hitting a new all-time low.

“The Turkish story is well known and has been ongoing for a while now, so I get the sense that investors would not have been caught off-guard,” said Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. “There is little risk of heavy foreign fund outflows.”

In an interview with a state broadcaster late Tuesday, Erdogan said it’s “imperative” that the central bank lower interest rates, giving a vague reference to summer months as a target date.