Fragile Confidence Returns to Turkey as Markets Cheer Rate Hike

SectorFinancial Markets
CountryMiddle east

Shoppers in the Eminonu district of Istanbul, Turkey, on Aug. 11. Photographer: Kerem Uzel/Bloomberg Photographer: Kerem Uzel/Bloomberg Turkey’s biggest interest-rate increase in more than two years is being hailed as the first step in restoring the central bank’s credibility, underpinning the nation’s currency, stocks and bonds.The Monetary Policy Committee led by Governor Naci Agbal increased the one-week repo rate Thursday to 15% from 10.25%, as forecast by most analysts polled by Bloomberg. The central bank also said all funding will be provided through the main policy rate, more...