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Turkey raises its key interest rate to 17.5%

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( ) -q-17- UNDATED (Correspondent Jeremy House) “Recep Tayyip Erdogan.”

Turkey’s central bank is raising its key interest rate to 17.5%.

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Out-cue: Recep Tayyip Erdogan]

TAG: Correspondent Jeremy House reporting. The bank started cutting rates in late 2021 in line with Erdogan’s belief that lowering interest rates fights inflation, contradicting traditional economic theory.

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VERBATIM: It’s a further sign of commitment to orthodox economic policy following elections in May. The 2.5 percentage point hike came a month after the bank raised rates from 8.5% to 15%. That followed more than a year of rate-cutting prompted by President Recep Tayyip Erdogan.

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