Turkey's Central Bank to Implement Steep Interest Rate Hike in Policy Reversal

Turkey's new economic team is expected to reverse some of President Erdogan's unorthodox economic policies and raise interest rates dramatically from the current level of 8.5% to tackle inflation, which is almost 40%. Economists are divided on how sharp the hike will be, with some suggesting an 11.5-point increase to 20%, while others expect the rate could hit 40%. Turkey's leader has so far insisted on keeping interest rates down, but the country's inflation rate remains stubbornly high and its central bank's reserves have fallen to critically low levels.