Turkey's Bold Move: Interest Rates Soar to Tame Inflation

Turkey's central bank surprised markets by raising interest rates to 25%, higher than the expected 20%, in an effort to combat inflation. The move comes as the country's inflation rate remains stubbornly high, prompting the central bank to revise its year-end forecast to the "upper bound of the range." The Turkish lira rallied against major currencies following the announcement, signaling positive market sentiment. This decision reflects a departure from the previous policy of lowering interest rates, as President Erdogan appointed a new central bank governor in June.