English
Breaking: The Turkish lira plummets again.
The Turkish lira continued its significant declines during Monday's trading, following the release of an important report from the American investment bank Morgan Stanley regarding the economic situation in the country.
Morgan Stanley (NYSE: MS) issued a report predicting a delay in the recovery of Turkish banks' margins, citing macroeconomic pressures and tighter regulations.
These analyses come as the investment bank expects the Central Bank of Turkey (CBRT) to focus on reducing inflation by taking stricter measures, which will impact the banking sector's performance in the near term.
The Central Bank of Turkey had extended its pause on interest rate hikes for the seventh consecutive month and adopted a more hawkish stance on inflation, pushing expectations of a rate cut to next year.
The Monetary Policy Committee, headed by Governor Fatih Karahan, decided to keep the main interest rate (the one-week repo rate) at 50% last Thursday, in line with most expectations. Monetary policymakers had softened their tone last month, leading analysts to believe that a rate cut might be imminent, but Thursday's statement reversed that direction.
Meanwhile, the Turkish lira is weakening against the US dollar, trading at 34.30 lira per dollar, down 0.8% during the day. The euro reached 37.16 lira per euro.
On the other hand, the price of gold per gram in Turkey recorded around 3,007 lira, up 0.34% during the day.
