UN General Assembly Turkey

President of Turkey Recep Tayyip Erdogan addresses the 77th session of the United Nations General Assembly, Tuesday, Sept. 20, 2022 at U.N. headquarters.

ISTANBUL — Turkey’s central bank delivered another massive interest rate cut Thursday despite eye-popping inflation above 80%, moving the opposite way from world economies that are raising rates to control prices as the lira sunk to record lows.

The Central Bank of the Republic of Turkey lowered the benchmark rate by 1 percentage point, to 12%. The lira was trading around 18.38 against the dollar, weakening further than the previous record low of 18.36 in December.

The depreciation of Turkey's currency is likely to intensify the financial worries of residents who have seen their purchasing power erode during a series of economic shocks in the country.

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