Central Banks

Supersized Rate Hike Spurs Massive Rally Across Turkish Markets

  • Lira, stocks jump on much higher-than-expected rate increase
  • Move seen as pivot into orthodox measures to curb inflation

Pedestrians in the Eminonu district of Istanbul, Turkey.

Photographer: Kerem Uzel/Bloomberg
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Turkey’s central bank’s jumbo interest-rate increase triggered a major rally in the country’s assets on hopes that it augurs the unwinding of policies that have sent foreign investors fleeing the $900 billion economy.