Central Banks
Turkey Delivers Another Big Rate Hike as Inflation Spirals
- Central bank delivers its fifth straight rate hike on Thursday
- Focus remains on attracting bond inflows amid inflation pickup
Hafize Gaye Erkan
Photographer: Adem Altan/AFP/Getty ImagesThis article is for subscribers only.
Turkey’s central bank delivered another sizable interest-rate increase on Thursday and signaled it could tighten policy further to rein in inflation that’s on track to end this year near 70%.
The Monetary Policy Committee, led by Governor Hafize Gaye Erkan, lifted its benchmark rate to 35% from 30%, in line with most forecasts. Turkish bank stocks rose as much as 3% after the decision before paring gains as of 3:52 p.m. local time. The lira was little changed.