The Turkish lira fell to a record low after Turkey's central bank unexpectedly cut its benchmark interest rate on Thursday, triggering a new round of market turmoil and reflecting President Recep Tayyip Erdogan's shadow on monetary policy.
The MPC cut the key one-week repo rate by 100 basis points to 18 per cent. All but one of the 23 economists previously surveyed by Bloomberg expected the policy rate to remain at 19%.
Turkey's inflation rate unexpectedly climbed to 19.25 per cent last month, sending real interest rates below zero for the first time since October.
The Turkish lira fell to a record low against the dollar, falling 1.1 per cent to 8.7537 at 2:25 local time.