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Central bank defies Erdogan hours after president’s move to restrict foreign-currency transactions; hard-hit lira jumps against the dollar
A sizable and long-awaited interest-rate rise in Turkey cheered some investors about the country's ability to address its economic problems. WSJ’s Alistair MacDonald explains if this will be enough for markets.
ISTANBUL—Turkey’s central bank sharply raised interest rates—defying President Recep Tayyip Erdogan’s demand to cut them—in an attempt to counter the country’s economic problems and reverse growing investor aversion to emerging-market economies.
The central bank increased its main interest rate to 24% from 17.75% on Thursday, citing concerns over price stability and saying it would maintain a tight monetary-policy stance until the inflation outlook improves significantly.