Turkey's Lira Rallies After Jumbo Rate Hike

The Turkish Central Bank made a surprising decision to increase its key policy rate to 25%, marking the largest hike in five years and the highest rate in two decades. This decision diverged from previous guidance of gradual rate hikes, catching markets off guard. Despite the increase, the policy rate remains significantly below the inflation rate, suggesting further hikes may be needed. The new central bank management's approach remains uncertain, with no clear pattern in their rate decisions.

What was the biggest increase in the Turkish Central Bank's rates in years?

What was the Turkish Central Bank's key interest rate after the recent hike?

What does the recent rate hike signify about the Turkish Central Bank's approach?

What was the general expectation regarding the Turkish Central Bank's rate hikes before the recent decision?

How does the current Turkish policy rate compare to the inflation rate?