Turkey’s central bank delivered another sizable interest-rate hike, matching expectations but disappointing a market that was pricing in more aggressive moves to curb inflation running at almost 60%.
The lira reversed gains after the Monetary Policy Committee raised rates for a fourth straight time to bring its benchmark to 30% from 25%. It reiterated plans to proceed “in a timely and gradual manner until a significant improvement in the inflation outlook is achieved.”
But a tightening cycle that would have been unthinkable just months ago is no longer proving enough in the face of an escalating cost-of-living crisis that’s pushing Turkish interest rates deeper below zero when adjusted for inflation.
Read the full story on Bloomberg here.