Turkish prime minister praises central bank rate hold as lira falls to record lows


Today's decision by the Central Bank of Turkey (CBT) to hold interest rates despite a sharp drop in the lira's value has earned praise from prime minister Tayyip Erdogan, raising questions about the bank's independence in carrying out its mandate.

The CBT kept its overnight Marginal Funding Rate at 7.75% despite the lira dropping to 2.23 against the dollar from 2.03 on December 17, when revelations of a government corruption scandal spooked investors. By contrast, the capital outflows from

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