LONDON: Turkey's lira suffered one of its worst days in three years on Thursday after the central bank defied warnings of a full-blown currency meltdown and rocketing inflation, and slashed interest rates by 100 basis points.
The country's President Tayyip Erdogan takes the unorthodox view that lower rates are the only way to curb inflation. Not only has he seemingly got his way this time, but his central bank chief hinted at another cut next month.
