The situation forces businesses and ordinary people to spend as much as possible before their liras lose even more value with each month. Turkey now has a negative real interest rate of 66.6 percent when adjusted for inflation. He has fired three central bank governors since 2019 who have tried to pursue a more conventional economic policy. Turkish President Recep Tayyip Erdogan subscribes to the unorthodox belief that high interest rates cause inflation rather than rein it in. The war has sent food and energy prices soaring and forced central banks to raise borrowing costs - even as economic growth remains anaemic. Turkey's monetary policy decision contradicts the approach pursued by most other countries as they try to combat the spike in consumer prices caused by global supply chain issues and Russia's invasion of Ukraine. Timothy Ash, BlueBay Asset Management economist Loot chests in 3 of the Moon’s Lost Sectors. Name Description Cost Requirement Reward. The Turkish lira lost one percent of its value against the dollar within moments of the announcement, AFP reported. Blind Well: Scorn, Plagues: Sikariis & Varkuuriis Weekly Bounties. "Just insane - with inflation at 80 percent and rising," BlueBay Asset Management economist Timothy Ash remarked in an emailed comment to AFP. The central bank said "recession is increasingly assessed as an inevitable risk factor" as it lowered its one-week repo auction rate to 13 percent from 14 percent. Turkey's central bank on Thursday stunned the markets by lowering its main interest rate even as inflation soared to a 24-year high and looks set to climb further.