Turkey Institutes Steep Interest Rate Increase to Combat Record Inflation and Rebalance Faltering Economy

Turkey's central bank raised its key interest rate by 6.5 percentage points to 15% in an effort to counter high inflation and stabilize the economy.
The rate hike signals a shift to more conventional economic policies and away from President Erdogan's belief that lowering rates curbs inflation.
Inflation in Turkey surged to nearly 85% last year, and the Turkish lira has crashed to record lows against the dollar, bringing economic hardship.
The rate increase missed analyst expectations but is expected to continue rising to as high as 35% to tame inflation and steady the lira.
Respected economist Mehmet Simsek was appointed finance minister, and former Goldman Sachs director Erkan was named central bank head in a government shuffle aimed at restoring economic credibility.