Turkish cenbank cuts rates despite lira crash

Turkey will hike its minimum wage by a huge 50% to around $275 per month.

President Tayyip Erdogan made the announcement Thursday (December 16).

He said it was part of a plan to address the Turkish Lira's plummeting value and the country's inflation spike.

"We are determined to put an end to the uncertainty that has arisen due to the fluctuations in the exchange rate and the exorbitant price increases as soon as possible."

Erdogan spoke after the central bank again cut its policy rate by 100 basis points to 14%.

The President has pursued an unorthodox policy of cutting interest rates in the face of price rises.

That has led to a selloff in the lira - which is down 40% since the start of November - and hit household budgets.

The currency slumped to fresh record lows following the central bank move.

Inflation jumped above 21% last month, and is expected to hit 30% next year due to the currency slide.

According to Erdogan, the new minimum wage would be the highest ever.

He also said the government would lift taxes on the wage to ease burdens for employers.

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