Turkey cuts interest rates by 100bps, surprising economists
Government-owned lenders sold at least $300m to support the Turkish lira after the unexpected decision
Istanbul/Athens — Turkey has lowered interest rates more than forecast by most economists, forcing state banks to defend the lira to keep it from breaching a key threshold against the dollar.
Government-owned lenders sold at least $300m to support the Turkish currency after the rate decision, according to two traders with knowledge of the matter. On Wednesday, the Turkish monetary policy committee (MPC) reduced its benchmark for an eighth time in less than a year, lowering it to 8.75% from 9.75%. Only two of 28 economists in a Bloomberg poll correctly predicted the move, with the rest seeing a smaller cut or a hold...
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