TCMB

The Lira turned back onto recovery road leading GBP/TRY, USD/TRY and EUR/TRY to topple on Thursday after the Central Bank of the Republic of Turkey (CBRT) more-than met expectations with its latest interest rise, prompting some analysts to suggest forecast upgrades are on the way.

The Lira leapt higher against the Dollar, Pound and Euro on Thursday after the Central Bank of the Republic of Turkey (CBRT, TCMB) raised interest rates and announced a landmark shift in how it sets policy, placing the Turkish currency on course to reverse its summer sell-off, according to some analysts. 

The Lira rallied further on Friday after regulators relaxed restrictions on currency transactions following a surprise interest rate rise from the central bank, although analysts say the road toward stability is a long one and that rate setters will need to go further to prevent fresh losses befalling the Lira.