Turkey raises rates sharply, boosts lira


The bank's Monetary Policy Committee said in a statement it was implementing "a strong monetary tightening to support price stability".

Brett Diment at Aberdeen Standard Investments said raising rates would put "Turkey on the slow road to recovering some monetary policy credibility, and that is critical". This boosted investors' fears that the president - who wants to see lower borrowing costs to spur credit growth and construction - sought greater influence over monetary policy.

The lira traded flat on Friday before Erdogan's remarks, holding the gains it made against the USA dollar on Thursday after Turkey's central bank increased interest rates and the government banned the use of foreign currencies in the country's property market.

The lira rallied 3 per cent to 6.18 against the dollar, having traded at 6.4176 beforehand.

The MSCI All-Country World index, which tracks shares in 47 countries, rose 0.24 percent and touched its highest since September 4.

The lira has lost around 40 percent of its value this year amid growing global concern over the health of the Turkish economy and a damaging diplomatic dispute with the US.

Trump Says Democrats Inflated Puerto Rico Death Toll From Hurricane Maria
Researchers at George Washington University's Milken Institute School of Public Health, commissioned by Puerto Rico Gov. Boston Red Sox manager Alex Cora wasn't a big fan of President Donald Trump's comments Thursday about Puerto Rico.

But Neuteboom of ABN Amro said much more was needed for Turkey to turn around "the negative spiral" the economy is in.

President Recep Tayyip Erdogan signed a decree early Thursday that requires using the lira for buying, selling and renting of real estate and leasing of vehicles, according to presidential sources.

Erdogan a year ago said the fund needed a "reorganisation" after the first chairman Mehmet Bostan was removed from his post in September 2017.

Analysts say the lira´s plunge last month had been sparked by a combination of concerns over domestic policymaking and a crisis in relations with the United States.

Erdogan called on Turkey's exporters to take advantage of the current levels in foreign exchange rates to increase the volume of exports, and production and employment as well.

"The central bank is independent and makes its own decisions", he said.

Hurricane Florence deluges Carolinas ahead of landfall
There will be hurricane-force winds up to 80 miles from the centre of the storm, meteorologists say. Utility companies said millions were expected to lose power and restoration could take weeks.

The bigger question now will be if they can really maintain their independence moving forward considering Erdogan's comments earlier?

There had been indications from the bank that it would raise rates after inflation came in at almost 18 percent in August.

That decision sent the lira tumbling by a quarter and prompted Turkish authorities to impose a series of measures meant to support the currency.

The president also called on the country's people to trust the national currency and convert their savings to lira.

The lira's gains is also proving to be a positive across emerging markets as well with the rand and rouble also gaining on the day, both currencies up by more than 1% against the dollar.

MVP Stewart leads Seattle Storm to sweep of Mystics, 3rd WNBA title
Stewart drained all four of her three-point attempts in the first half to build Seattle's insurmountable lead. Yet less than a minute later, the Storm had the lead back to 15 points, completely shutting the Mystics down.