Turkey’s central bank hiked interest rates Tuesday in an effort to stabilize the country’s currency following a sweeping sell-off in emerging markets.
The announcement came following an emergency meeting convened in response to the crisis. The bank increased its key overnight lending right well beyond what analysts were expecting to 12% from 7.75%.
Other emerging market currencies, including Argentina’s peso and India’s rupee, have also been hit by expectations that the Federal Reserve and the Bank of England will pull back on their stimulus measures, which have driven inflows to developing economies in recent years.
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