Turkish Lira Drops To Near 9-month Low Versus U.S. Dollar After Turkey Rate Cut

02:25, 19th February 2020

(RTTNews) - The Turkish Lira moved down against the U.S. dollar in the European session on Wednesday, as Turkey's central bank cut its key interest rate by 50 basis points, the sixth consecutive cut in an aggressive easing cycle that began in July last year.

The Monetary Policy Committee, led by Governor Murat Uysal, slashed the policy rate, which is the one-week repo auction rate, to 10.75 percent from 11.25 percent.

"At this point, the current monetary policy stance remains consistent with the projected disinflation path," the bank said.

"As the contribution of net exports to economic growth declines, economic recovery is expected to be sustained with the help of the ongoing disinflation process and improvement in financial conditions," it added.

The Turkish Lira declined to near a 9-month low of 6.0809 versus the greenback from Tuesday's closing value of 6.0540. The Lira may locate downside target near the 6.5 level.