Turkey Hikes Rate Again as It Tries to Get Grip on Inflation
- Investors told tackling inflation is Turkey’s ‘No. 1 priority’
- Erdogan signed off on monetary tightening to cool price growth
A shopper browses garments for sale at a clothing store in the Beyoglu district of Istanbul, Turkey.
Photographer: Kerem Uzel/BloombergThis article is for subscribers only.
Turkey’s central bank delivered another sizable interest-rate hike, matching expectations but disappointing a market that was pricing in more aggressive moves to curb inflation running at almost 60%.
The lira reversed gains after the Monetary Policy Committee raised rates for a fourth straight time to bring its benchmark to 30% from 25%. It reiterated plans to proceed “in a timely and gradual manner until a significant improvement in the inflation outlook is achieved.”