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Turkey’s central bank unleashes a big interest rate hike

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( ) -q-18- UNDATED (Correspondent Jeremy House) “inflation has surged.”

Turkey’s central bank has raised its key interest rate by an aggressive 7.5 percentage points, in a new sign of a return to more traditional economic policies.

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TAG: Correspondent Jeremy House reporting. Central banks worldwide have been hiking rates to bring consumer price rises under control, but the Turkish central bank started cutting rates in late 2021 under pressure from Erdogan. He appointed a new economic team after being reelected in May.

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VERBATIM: The bank hiked its policy rate to 25%. The bank is backtracking from a rate-cutting course set by President Erdogan that’s been blamed for inflaming a cost-of-living crisis. Many households have been left struggling to afford rent and basic goods as inflation has surged.

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