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Turkey's rate hike will curb lira volatility, hit growth -Moody's
January 31, 2014 / 10:42 AM / in 4 years

Turkey's rate hike will curb lira volatility, hit growth -Moody's

ISTANBUL, Jan 31 (Reuters) - Turkey’s interest rate hike will alleviate some of the pressure on its sovereign creditworthiness and help curb lira volatility but will hurt its economic growth prospects, rating agency Moody’s said on Friday.

“While the central bank’s action contains the country’s currency volatility, reduces financial stress in the economy and thus limits the likelihood of a balance-of-payments crisis, it comes at the cost of significantly weakening Turkey’s economic growth prospects,” Moody’s said in a statement.

Reporting by Seda Sezer; Editing by Nick Tattersall

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