Turkey Central Bank Is Latest to Surprise With Rate Increase

Nine of 17 analysts in Bloomberg survey expected rate increase
Core inflation worst on record in May, PPI at above 20 percent

Geoff Dennis, head of global EM equity strategy at UBS, discusses the outlook for the lira.(Source: Bloomberg)

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By Tugce Ozsoy

June 7, 2018 at 11:07 AM UTC

Updated on

June 7, 2018 at 12:05 PM UTC

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Turkey joined a string of emerging-market central banks whose interest-rate decisions have surprised investors, tightening policy on Thursday for the third time in less than two months. The lira surged and the nation’s bonds rallied.

The decision came three days after an inflation report showed consumer prices rose 12.15 percent in May from a year earlier, with the worst core reading on record and producer prices advancing more than 20 percent.