Turkish Real Rate as Low as Japan’s After Inflation Surprise

Turkey’s inflation accelerated faster than forecast for a second month, pushing its real interest rates further below zero and to the same level as Japan’s after five rounds of aggressive monetary easing.

While inflation is close to peaking, the central bank might face its most contentious decision under a new governor later this month after pledging to make its next steps “data driven.” Price growth in January exceeded all but four estimates in a Bloomberg survey of 22 economists, reaching an annual 12.2% from 11.8% in December, according to data released on Monday.