Kai Tuo Macro: Despite the Turkish Central Bank maintaining interest rates unchanged, the lira against the US dollar is still hovering near record lows.

Although the Central Bank of Turkey kept interest rates unchanged at 37.0% and stated that it may raise them if the inflation outlook requires it, the Turkish lira against the US dollar continues to hover near record lows. Investors are concerned that the Middle East war has left Turkey vulnerable to high energy prices. Liam Peach of Capital Economics stated in a report: "A wider, more sustained surge in prices will lead to more serious balance of payments tensions, bringing new downward pressure on the lira and to some extent impede the rebalancing process." Data from the London Stock Exchange Group shows that the US dollar rose 0.1% against the Turkish lira to 44.1097 lira; before the decision was announced, the dollar had reached a record high of 44.1311 lira.