Turkish central bank stuns market by hiking interest rates to 50%

Hawkish rise comes 10 days before local elections as, analysts say, a signal it is independent from political constraints

Turkey’s central bank unexpectedly raised interest rates to 50% on Thursday, citing a deteriorating inflation outlook and pledging to tighten further if it looks like inflation is significantly and persistently worsening.

The hawkish move came 10 days before local elections and was seen by analysts as a signal that the central bank was independent from any political constraints and determined to tackle price rises.

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