Turkey Raises Rates to 20-Year High of 40% to Fight Runaway Inflation
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Turkey's central bank raised interest rates to 40%, the highest level in 20 years, in an effort to address 61.36% inflation.
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This marks a departure from President Erdogan's previous unorthodox strategy of cutting rates to fight inflation.
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The new economic team, led by finance minister Mehmet Simsek and central bank governor Hafize Gaye Erkan, swiftly hiked rates.
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Erkan said the era of rapid hikes would soon end, but rates would stay high to ensure price stability.
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Turkey once saw growth under Erdogan but faced challenges in recent years, including a 2021 currency crisis triggered by low rate policies.