Turkey may cut rates
The Turkish central bank is expected to continue slashing interest rates as it meets this week, by lowering its base interest rate to 7.25%. This would make Turkey one of only 3 G20 nations who continues to cut rates as the global forecast improves. If the interest rate is reduced, it would mean the central bank has slashed a total of 9.5% from interest rates in the last year.
Turkish growth rates have suffered significantly during the recession, contracting by -14% in the first quarter and -7% in the second. Unemployment has also reached over 13%. Economists claim this is due to the narrow range of industries the country is dependent on and the high levels of foreign investment. At present, domestic demand remains weak and consumer confidence low and this is keeping exchange rates for the Turkish lira under pressure.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.