CNBC: Lira jumps after Turkish central bank hikes rates in a bid to save tumbling currency
* The Turkish lira jumped more than 5 percent on the Central Bank of Turkey's decision to raise interest rates to 24 percent.
* The last few months have seen a massive sell-off in Turkish assets thanks to investor fears over the central bank's independence and a political spat between President Recep Erdogan and Washington.
* The lira has fallen some 40 percent in value against the dollar since the year's start, prompting fears of contagion amid a wider emerging markets shakeup.
The Central Bank of Turkey increased its benchmark interest rate on Thursday to 24 percent, a hike of 625 basis points from the previous rate of 17.75 percent. The Turkish lira jumped more than 2 percent on the news, firming to around 6.1 against the dollar.
The move, which exceeded market expectations of an increase of between 300 and 400 basis points, boosted the lira and saw Turkish sovereign dollar bonds gain across the curve to their highest level since the end of August. The lira touched as high as 6.0030 against the dollar immediately following the announcement.
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WNU Editor: This is not what Turkish President Erdogan wants .... Turkey's Central Bank Defies Erdogan With Drastic Interest Rate Hike (NPR). This is also not going to stop the slide of its currency. The problem is the government's economic policies, and the refusal of the Erdogan government to change.
More News On Turkey Raising Interest Rates To 24% To Put A Stop To The Downward Spiral Of Its Currency
Turkey succumbed to reality and jacked up interest rates to 24% -- Quartz
Turkey's Central Bank Raises Interest Rates to Curb Inflation -- The New York Times
Turkey Takes Action on Strained Economy With Big Rate Rise -- The Wall Street Journal
What the sliding lira and economy mean for Turkey’s banks -- The Economist
