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Turkish lira rallies ahead of rate decision

The Turkish lira is climbing off its weekly lows this morning in the wake of the assassination of the Russian ambassador in Ankara on Monday and ahead of another key interest rate decision later today.

At publication time, the lira has gained 0.35 per cent against the dollar to TRY3.5180 per dollar, having slumped to as low as TRY3.5340 in the aftermath of the shooting of Andrei Karlov by 22-year old gunman Mevlut Altintas at a cultural centre in the Turkish capital on Monday afternoon.

Later today, the country’s central bank is due to decide on whether to carry out its second consecutive interest rate rise to support the currency in the face of Turkey’s worst growth slowdown since the financial crisis in 2009.

Economists are split on the central bank’s next move after it raised rates for the first time in nearly three years in November to help prop up the flagging lira (read more here).

We’re expecting the decision at 1100 GMT.

(Chart: Bloomberg.)

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