Turkey’s lira hovered near record lows on Monday as a series of sharp interest rate rises starting in June failed to relieve pressure on the currency. 

The lira traded as low as TL27.21 against the US dollar in London trade on Monday, bringing its decline for 2023 to about 30 per cent, according to FactSet data. 

President Recep Tayyip Erdoğan’s new economic team, which he appointed after he was re-elected in May, has allowed the lira to depreciate sharply as part of a broad effort to restore “rational” economic policies. 

The central bank has boosted interest rates from 8.5 per cent to 30 per cent. However, with annual consumer price growth running at nearly 60 per cent, inflation-adjusted, or “real”, interest rates remain deeply negative.