The lira strengthened to 28.85 against the dollar
Turkey's lira edges up after GDP data
Turkish economy has performed better than expected in the third quarter, boosting expectations of a further 250 basis points rate hike by the central bank in December.
Thursday 30/11/2023
The lira strengthened to 28.85 against the dollar
LONDON - Turkey's lira edged up on Thursday after data showed the local economy grew faster than expected in the third quarter.
The lira strengthened to 28.85 against the greenback after data showed Turkey's economy expanded by 5.9% in the third quarter, boosting expectations of a further 250 basis points rate hike by the central bank in December.
Nevertheless, analysts predicted Turkey's economy would begin to slow after aggressive monetary tightening designed to cool demand and inflation.
"With the central bank set to keep interest rates at a restrictive level over the coming quarters, growth looks set to slow further in 2024 and this will help to narrow the current account deficit and cool inflation pressures," said Liam Peach, senior emerging markets economist at Capital Economics.