Reported 2 days ago
Turkey's central bank unexpectedly raised its key interest rate by 350 basis points to 46%, reversing a previous easing trend following recent market volatility triggered by the arrest of Istanbul's mayor. This aggressive move, which also saw the overnight lending rate increase to 49% and borrowing rate to 44.5%, aims to combat rising inflation risks and stabilize the lira, which had recently hit a record low. The bank indicated it would tighten further if inflation deteriorates, as pressures from domestic demand and inflation expectations remain significant.
Source: YAHOO