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Turkey stuns investors with massive interest rate hike

2014-01-29 71 Dailymotion

In a bid to rescue the tumbling Turkish lira, the country’s central bank has made a massive hike in all its key interest rates.<br /><br /> The surprise move came after an emergency midnight policy meeting on Tuesday.<br /><br /> Immediately after the bank’s overnight lending rate was raised to 12 percent the lira strengthened against the dollar.<br /><br /> The decision comes despite opposition from the government which is trying to maintain economic growth ahead of elections in two months. <br /><br /> The lira has been under pressure due in part to continuing political instability connected to a corruption scandal.

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