ISTANBUL: The Turkish lira extended losses on Thursday before a monetary policy committee meeting when the central bank was expected to cut its key interest rates.
A Reuters poll forecast the bank would lower its benchmark policy rate, overnight borrowing and lending rates by 50 basis points to guard against future lira appreciation and to boost economic growth.
A decision is due at 1200 GMT.
"After having returned to the "low rates-tight macroprudentials mix" in April, the bank is once again in a very comfortable position to lower rates, in our view," said Inan Demir, chief economist at Finansbank.
"We expect Monetary Policy Committee (MPC) to cut all policy rates by 50 basis points today," he said.
The Turkish lira weakened for a sixth day against the dollar to 1.8230 by 0930 GMT, from 1.8206 late on Wednesday.
Ratings agency Standard & Poor's said on Thursday that Turkey's economy appeared to be on a sustained recovery path after a softer performance in 2012 and forecast growth of about 4 percent this year and next.
"Although S&P did not comment on the country's sovereign credit grade, the emphasis on recovery of economic activity keeps expectations for an investment grade in the medium to long term alive," said Ali Cakiroglu, strategist at HSBC Asset Management.
<Center><b><i>Copyright Reuters, 2010</b></i><br></center>
Comments
Comments are closed for this article.