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

Turkey's central bank hiked interest rates to 50% in a bid to fight rampant inflation that has reached 67% in February.

This is the third rate hike since May, totaling 3,650 basis points, but inflation remains extremely high.

Inflation has been an issue in Turkey since 2018 due to factors like sanctions, unconventional policies, and high private debt.

The Turkish lira responded positively to the rate hike, falling from its record low against the dollar.

More rate hikes are likely if March inflation figures remain high, marking a policy shift for Turkey's president who previously criticized rate hikes.