Türkiye.. The “Central” fixes the interest rate at 8.5%, and the lira is declining


Turkey’s central bank kept the interest rate steady at 8.5%, while the lira fell to record lows.

This comes for the third month in a row, although the market was affected after the first round of elections.

The lira hit record lows, dollar sovereign bonds and Turkish stocks fell, while the cost of securing exposure to Turkish debt rose.

The bank said after its monthly meeting that maintaining supportive financial conditions is now more important, in order to maintain the continued growth of industrial production and the positive trend in terms of employment.

Economists expect annual inflation to rise again in the coming months, after falling below 44% in April from a peak of more than 85% last year.

After the decision of the Turkish Central Bank, the Turkish lira witnessed declines to record low levels today, Friday, at 20 lira against the dollar.

The markets are awaiting the run-off in the presidential elections that will take place on Sunday, and the economic factor is an important axis in the electoral decision.

Since the beginning of the year, the lira has declined by more than 7%, losing 44% of its value in 2021 and 30% in 2022.

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