{"id":2124,"date":"2018-09-13T15:51:22","date_gmt":"2018-09-13T15:51:22","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/turkey-raises-interest-rates-to-24-in-new-bid-to-boost-lira\/"},"modified":"2018-09-13T15:51:22","modified_gmt":"2018-09-13T15:51:22","slug":"turkey-raises-interest-rates-to-24-in-new-bid-to-boost-lira","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/turkey-raises-interest-rates-to-24-in-new-bid-to-boost-lira\/","title":{"rendered":"Turkey raises interest rates to 24% in new bid to boost lira"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"Turkish lira\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/17FAD\/production\/_103412289_lira.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">The lira has risen against the dollar after Turkey&#8217;s central bank hiked interest rates to 24% on Thursday &#8211; the biggest increase in President Tayyip Erdogan&#8217;s 15-year rule.<\/p>\n<p>The hefty 6.25 percentage point rise is the bank&#8217;s latest attempt to stem the currency&#8217;s collapse.<\/p>\n<p>The lira is down 38% against the dollar this year despite Thursday&#8217;s slim gain.<\/p>\n<p>The move came despite Mr Erdogan repeating his opposition to high interest rates earlier in the day.<\/p>\n<p>He has repeatedly blamed the central bank for high inflation, which hit almost 18% last month, its highest level since 2003.<\/p>\n<p>However, <a href=\"https:\/\/www.bbc.co.uk\/news\/world-europe-45225796\" class=\"story-body__link\">a diplomatic row with the United States<\/a> and concerns about the president&#8217;s influence on monetary policy have eroded investor confidence in Turkey in recent months.<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/world-europe-45142256\" class=\"story-body__link\">Turkey&#8217;s lira slump explained<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/world-europe-45508672\" class=\"story-body__link\">Turkey bans foreign currency for property market<\/a><\/li>\n<\/ul>\n<p>Mr Erdogan, who has called himself an &#8220;enemy of interest rates&#8221;, chose his son-in-law, Berat Albayrak, as finance minister in July. <\/p>\n<figure class=\"media-landscape has-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    President Erdogan has blamed Turkey&#8217;s central bank for high inflation<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<p>Phoenix Kalen at Societe Generale said the market was both pleased and confused by the bank&#8217;s move.<\/p>\n<p>&#8220;It almost seems like it&#8217;s a game of &#8216;good cop, bad cop&#8217; being played out between the Turkish authorities &#8211; with President Erdogan on the one hand still making statements regarding his dislike of interest rates and&#8230; a very sizeable reaction from the central bank in response to the recent inflationary and geopolitical developments,&#8221; she said.<\/p>\n<p>Brett Diment at Aberdeen Standard Investments said raising rates would put &#8220;Turkey on the slow road to recovering some monetary policy credibility, and that is critical&#8221;.<\/p>\n<p>Piotr Matys at Rabobank said Turkey also needed to resolve its trade dispute with the US and rebalance the economy away from big infrastructure projects and consumer spending.<\/p>\n<p>The central bank surprised investors by not raising rates when it last met in July. <\/p>\n<p>That decision sent the lira tumbling by a quarter and prompted Turkish authorities to impose a series of measures intended to support the currency.<\/p>\n<p>On Thursday Turkey <a href=\"https:\/\/www.bbc.co.uk\/news\/world-europe-45508672\" class=\"story-body__link\">banned the use of foreign currencies in the country&#8217;s property market<\/a>. <\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45508570\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images The lira has risen against the dollar after Turkey&#8217;s central bank hiked interest rates to 24% on Thursday &#8211; the biggest increase in President Tayyip Erdogan&#8217;s 15-year rule. The hefty 6.25 percentage point rise is the bank&#8217;s latest attempt to stem the currency&#8217;s collapse. The lira is down 38% against the &hellip; <\/p>\n","protected":false},"author":0,"featured_media":2125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2124"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/2125"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}