Turkey stuns investors with massive interest rate hike

2014-01-29 71

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.

The surprise move came after an emergency midnight policy meeting on Tuesday.

Immediately after the bank’s overnight lending rate was raised to 12 percent the lira strengthened against the dollar.

The decision comes despite opposition from the government which is trying to maintain economic growth ahead of elections in two months.

The lira has been under pressure due in part to continuing political instability connected to a corruption scandal.