ECONOMICS - Turkey’s Central Bank raises interest rate to stop lira falling

ECONOMICS - Turkey’s Central Bank raises interest rate to stop lira falling:

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The Central Bank had been expected to raise the rate in a
controlled manner, as it signaled that it may do so to
      stabilize a plunging lira, after intervening to shore
up the currency as it sank to record lows. DHA Photo

Turkey’s Central Bank raised its overnight lending rate from 6.5 to 7.25 percent with a 75 base point increase at a policy meeting July 23 to stop the lira falling, but the Bank kept its one-week repo policy rate at 4.5 percent and its borrowing rate at 3.5 percent.

“In order to support price and financial stability, the committee has decided to raise the upper boundary of the interest rate corridor,” the statement said.

The lira strengthened to 1.9081 against the dollar from 1.9153 before the statement. The Central Bank had been expected to raise the rate in a controlled manner, as it signaled that it may do so to stabilize a plunging lira, after intervening in the first half of July to shore up the currency as it sank to record lows."

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