Overview

• Turkey's central bank has raised its key interest rate by another 2.5 percentage points, bringing the benchmark rate to 45%.
• This is the eighth interest rate hike since President Recep Tayyip Erdogan abandoned his unconventional economic policies.
• Inflation in Turkey reached nearly 65% in December, and many households are struggling to afford basic goods.
• Erdogan appointed a new economic team headed by former Merrill Lynch banker Mehmet Simsek, and Hafize Gaye Erkan, a former U.S.-based bank executive, took over as central bank governor.
• Under Erkan's tenure, borrowing costs have increased from 8.5% to the current 45%.