May's elections pose the greatest challenge to Erdogan's 20-year rule
Turkish lira edges down ahead of rate decision
Turkey’s central bank is expected to keep its benchmark rate steady at 8.5% in its last decision before elections next month.
Thursday 27/04/2023
May's elections pose the greatest challenge to Erdogan's 20-year rule
ANKARA - Turkey's lira edged down on Thursday ahead of a rate decision by the country's central bank, which is expected to keep its benchmark rate steady at 8.5% in its last decision before elections next month.
The lira traded at 19.4320 against the dollar by 0900 GMT, weakening from Wednesday's close of 19.4200.
May's elections pose the greatest challenge to President Tayyip Erdogan's 20-year rule. An inflation-driven cost of living crisis has eroded his support in recent years and his government has also been criticised for its response to a devastating earthquake in early February.
The lira has plumbed record lows this year as the central bank slashed interest rates in an unorthodox policy championed by Erdogan.
"In the event President Erdogan retains office... an unorthodox monetary policy framework is likely to stay in place and the lira could experience another significant depreciation," economists at Wells Fargo wrote in a note to investors.
"If a scenario unfolds where regime change materializes, we believe the lira could experience an outsized appreciation on expectations that an orthodox framework for monetary policy could be implemented."