Turkey's surprise rate cut plunges lira to new lows

Move follows Erdogan's assurance inflation is under control

20210923 Erdogan Turkey

Turkish President Tayyip Erdogan addresses the 76th Session of the U.N. General Assembly in New York on Sept.21. © Reuters

SINAN TAVSAN, Nikkei staff writer

ISTANBUL -- Turkey's central bank stunned markets on Thursday by slashing its key interest rate a full percentage point, with the lira plunging to record low levels.

The Monetary Policy Committee had been widely expected by forecasters to hold its one-week repo rate steady at 19%, but instead cut it by 100 basis points to 18%.

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