Emboldened by a Stronger Lira, Turkey Is Set to Cut Rates Again

Emboldened by a Stronger Lira, Turkey Is Set to Cut Rates Again

Little stands in the way of the Turkish central bank's ninth straight interest-rate cut after measures to prop up the lira drove out foreign investors.. In their absence, Turkish banks are playing an outsized role in stabilizing the lira.. What's more, a liquidity squeeze has at times made shorting the lira prohibitively expensive for foreign investors.. Turkey ran down its hard currency buffers to prop up the lira this year and finding a source of foreign exchange has become increasingly urgent, with gross central bank reserves down $17 billion since the beginning of the year to $89.2 billion ..