Turkey's Central Bank Outdoes Forecasts With Big Rate Hike.

Turkey's central bank surprised markets by raising interest rates by double the expected amount, leading to a strengthening of the lira. The Monetary Policy Committee increased the benchmark one-week repo rate by 500 basis points to 40%, surpassing the anticipated 250 basis point increase. The central bank has been tightening monetary policy since President Recep Tayyip Erdogan's re-election in May, aiming to combat inflation and attract foreign investors. The decision is seen as a positive step for the Turkish economy, with investors looking for further rate increases before investing in local debt markets. [Extracted from the article]