Turkey Hikes Rates to 50% in Ongoing Battle Against Stubborn Inflation

Turkey's central bank hiked interest rates to 50% to fight severe inflation that hit 67% in February, exceeding expectations.

It's the third major rate hike since 2023 elections, totaling 3,650 basis points cumulatively, but inflation remains rampant.

Inflation initially declined after peaking at 85% in 2022, but has rebounded sharply despite officials previously declaring an end to rate hikes.

The rate hike boosted the battered Turkish lira and suggests an encouraging policy shift under the new central bank governor.

The president now supports rate hikes after years of unorthodox opposition, but further hikes may be likely if inflation remains high.