Turkey’s bonds rallied, sending yields to all-time lows, after Moody’s Investors Service raised the country to investment grade for the first time in two decades, fueling expectation of capital inflows. The lira weakened on speculation the central bank will cut rates.
Turkey’s central bank cut its three main interest rates by more than economists expected, as it seeks to restrain capital inflows that strengthen the currency and hurt exporters. The lira fell to a 10-month low.
Swedish Finance Minister Anders Borg said banks in the largest Nordic economy are taking too long to wean themselves off foreign funding as he warns the financial industry will need to pay for the risks it’s creating.
The Dominican Republic said it will free up 20 billion pesos ($487 million) to stimulate growth by lowering reserve requirements and expanding loans to companies and consumers in the Caribbean’s largest economy.