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Turkey’s Lira Slumps After a Smaller-Than-Expected Rate Rise
Turkey’s central bank delivered a significantly smaller interest-rate increase than anticipated, as policy makers embark on what they said will be a gradual transition from an era of ultra-cheap money. The Turkish lira slumped as much as 4.3% after the first rate-setting meeting since Governor Hafize Gaye Erkan took over this month. The Monetary Policy Committee increased its policy rate of one-week repo to 15% from 8.5%. The lira was trading 4.1% lower at 24.5483 per dollar at 3:49 p.m. in Istanbul, while state lenders paused interventions to support the currency. Turkey’s dollar bonds erased gains to trade ... (full story)