Turkey’s central bank raised its key interest rate by 500 basis points to 40%, double the economists’ expectations of a 250-basis-point hike, CNBC reports.
The move is part of the central bank’s strategy to counter high inflation and stabilize the Turkish lira, which was trading at 28.766 to the dollar after the announcement, showing a slight strengthening.
In October, the country’s inflation reached 61%.
The decision follows a series of interest rate increases that aim to address years of soaring inflation and a significantly weakened currency due to loose monetary policies. The lira has depreciated by 35% against the dollar year-to-date and more than 80% over the last five years.
