Lira dropped for seven days in a row, losing 1.3% against USD and extending its monthly decline to nearly 9%. It has been the worst-performing currency in emerging markets. Economists predict the Turkish central bank will cut its benchmark rate by 100 basis points when it meets on Thursday. If so, the decision will effectively push the nation’s real yields into negative territory. Two months ago, policymakers cut the rate by 300 basis points to 16% even as inflation accelerated. USDTRY is currently trading at 10.7778 at press time.
Canada’s annual inflation rate accelerated again in October, the highest since February 2003. The increase primarily came from sharp rises in gasoline and housing prices. Inflation rose to 4.7%, though in line with expectations. The Bank of Canada signaled last month that a rate hike could come as early as April 2022. It also warned that inflation was likely to rise further this year and stay above target through most of next year.