Turkey's Central Bank headquarters is seen in Ankara Jan. 24, 2014. (REUTERS/Umit Bektas)
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Turkey's central bank cut a key interest rate for the fifth month in a row Tuesday, days after an attempted coup against President Recep Tayyip Erdogan triggered concerns over the country's economic outlook.The move would help banks borrow more cheaply from day to day, which could help ease liquidity restraints that emerge in the financial system at a time of heightened uncertainty.The more modest reduction may point to some concern about the impact on the Turkish lira, which has fallen sharply since the coup attempt and could be weakened further by lower interest rates.The attempted coup and the subsequent tough response by the government have reinforced concerns over the toxic political divisions in Turkey.The same applies to those planning to holiday in Turkey – tourism is a key sector and foreign-currency earner for Turkey. Before the attempted coup, most economic forecasters had penciled in Turkish economic growth of around 4 percent this year.
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