Turkish lire plummets when central bank cut important interest rates

Ankara 19 Aug : The Turkish Lira fell up to 1 cent against the US dollar following the central bank of the country chose to cut its interest rate for benchmarking purposesThe Ankara Bank in Ankara declared on Thursday that its main rate would be cut to 13 percent from 14 percent previously as reported by the news agency dpa.

The lira slipped over 18.1 against the dollar.The central bank hasnt increased the benchmark rate it has set since December 2021 , following an escalating series of unpopular rate reductions in accordance with President Erdogans demands.

The Turkish currency has been steadily declining in value for the past three years since Erdogan publicly urged the central bank to implement his unorthodox view that increased interest rates trigger more inflation.Turkish consumers are already struggling with rising inflation and soaring prices for food and energy.