Turkey's Central Bank Hikes Rates to 20-Year High of 40% to Tackle Soaring Inflation
• Turkey's central bank raised interest rates to 40%, the highest level in nearly 20 years, to address runaway inflation of over 60% • The rate increase of 5 percentage points was larger than expected and the 6th consecutive hike • Under President Erdogan, Turkey has struggled with high inflation after initially cutting rates against economic advice • Erdogan recently appointed more orthodox economic policymakers who have raised rates to stabilize prices and the lira • The central bank indicated that rate hikes are nearing their peak and will slow down soon after rapid increases this year