Istanbul | Turkey's central bank ramped up its key interest rate by 475 basis points to 15 per cent and pledged to remain tough on inflation on Thursday (Friday AEDT), meeting lofty market expectations after President Tayyip Erdogan installed a new governor and heralded a new economic approach.
The lira rallied 1.5 per cent after the bank's policy committee said its "transparent and strong" tightening step would lower double-digit inflation, reverse a harmful dollarisation trend and help it rebuild depleted foreign reserves.
