Economics
Turkey Central Bank Undoes Tightening After Adding Lira Defenses
The Turkish currency was little changed after the decision.
Photographer: Kostas Tsironis/BloombergThis article is for subscribers only.
Turkey’s central bank effectively rolled back a limited tightening of monetary policy it delivered this month, adding strain to the lira weeks before President Recep Tayyip Erdogan’s party seeks to keep control of Istanbul in a controversial rerun of local elections.
The regulator said on Tuesday that it’s starting to offer funds at its cheapest rate of 24% through the repo auction, 150 basis points lower than the overnight rate of 25.5% it’s used for almost two weeks.