Turkish central bank carries out emergency rate hike as currency falls
Erdogan statements and emerging market sell-off put pressure on lira
The Central Bank of the Republic of Turkey (CBRT) raised its de facto policy rate, the late liquidity window, by 300 basis points to 16.5% in an extraordinary meeting on May 23.
The move comes after a rapid depreciation of Turkey’s currency and several public statements by Turkish president Recep Tayyip Erdoğan that he intends to take more control of monetary policy. The CBRT last raised the policy rate on April 25, when it raised the late liquidity window by 75bp to 13.5%.
The April decision
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