Loading ...Erdogan’s Rate Cut Mantra Spurs Lira’s Worst Streak in 20 Years
(Bloomberg) — The Turkish lira’s freefall is shattering all kinds of records as President Recep Tayyip Erdogan’s intensifying campaign for lower interest rates plunges the country deeper into crisis.
The currency fell 15% on Tuesday, plunging past 13 per dollar for the first time ever. The lira’s 11-day losing streak is now the longest in 20 years, and in November alone, it’s lost almost a third of its value.
The latest selloff came after Erdogan defended his demands for lower borrowing costs that have driven up prices and frustrated investors. They complain monetary policy is becoming increasingly irrational and unpredictable in a country where the president’s influence runs deep. While most central banks are talking of tightening policy as the global recovery fuels inflation, Turkey has slashed 4 percentage points off borrowing rates since September.