Turkey's Central Bank Delivers Another Big Rate Hike to 62% Inflation, But End May Be in Sight
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Turkey's central bank raised its key interest rate to 42.5% on Thursday, its 7th consecutive hike, to combat high inflation of 62%.
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The rate hikes aim to reverse previous unorthodox policies of President Erdogan who favored rate cuts, appointing a new economic team.
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The bank indicated this may complete its tightening cycle soon to ensure price stability.
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Analysts say Turkey is on the right track in taming inflation, with bonds performing well.
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The bank is expected to halt tightening before local elections in March, completing hikes at 45% next month.