A massive interest-rate hike from Turkey is a decisive step to shore up its battered currency, but by no means marks the beginning of the end of troubles for beleaguered emerging markets, analysts say.
Turkey’s central bank late on Tuesday delivered a hefty 425 basis point rise in overnight lending rates to defend a crumbling lira.
Investors gave the move a clear thumbs up, with the Turkish lira bouncing. At 2.25 per dollar on Wednesday, the lira held comfortably above this week’s record low of about 2.39 per dollar.
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