Turkey’s Central Bank raises interest rates

According to media reports, Turkey’s Central Bank raised its interest rates after almost three years. The one-week repo and overnight lending rates were raised by 50 and 25 basis points to 8% and 8.5% respectively, the bank said. The overnight borrowing rate remained unchanged at 7.25%.

The lira rose by 0.8% following the decision. However, the rise was short-lived and it fell again by 1% within hours.

The lira is reportedly the currency which has weakened the most in the emerging markets following the deteriorating investor sentiment since the failed coup in July, according to economists.