Interest rate cut under inflation, Turkish lira plunges criticism of political intervention
トルコが新たな通貨危機に陥っています
Turkey is in a new currency crisis
Investors are selling Turkish lira all at once after the central bank has made an unusual decision to cut rates under inflation.
Although the price movement of Lira was stable on the 24th, it temporarily fell by about 15% against the dollar on the 23rd.
The rate of decline since the beginning of the year is as high as 40%.
The Turkish lira fell for 11 consecutive days until the 23rd, after the Turkish central bank cut the policy interest rate by 1% last weekend.
Inflation in October was 20% year-on-year, but the policy rate has been reduced by 4% from 19% to 15% since September.
Experts and opposition criticize President Erdogan for political intervention to force central banks to cut interest rates.
Mr. Erdogan has long defended the heretical view that rate cuts could be a measure against inflation.
Central banks usually move to raise rates to stop the economy from overheating during rising inflation
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