Rate Hike: Lira and Economy

rate hike: The current political turmoil in Turkey and the slowing economy has again shaken confidence, according to Deutsche Welle. Turkish businessmen told DW that if the Turkish lira continues to slide, it could jeopardize new investments and hamper growth. Following a sharp devaluation in the value of the lira then, that crisis lasted several years until the economy got back on its feet again with tight monetary measures. The economy slowed for the first time in seven years in the third quarter of last year. The lira extended losses and was trading at 3.8950 against the dollar on Wednesday morning, bringing total losses this year to almost 9 percent. Central bank intervention The expectations of a rate hike from the US Federal Reserve and Moody's report on Turkey's banking sector say security problems in the country are increasing macroeconomic pressures, pushing the lira to an all-time low of 3.77 against the greenback on January 9. (news.financializer.com). As reported in the news.