Turkish Central Bank's Rate Hike Falls Short, Lira Remains Under Pressure

Turkey's central bank raised its key interest rate by 250 basis points to 17.5%, falling below analyst expectations, as it aims to combat double-digit inflation. The Turkish lira weakened against the dollar following the news, which comes after the currency lost 30% of its value this year. The rate hike is part of efforts to implement economic orthodoxy and address the inflation situation, despite President Erdogan's opposition to high interest rates. Analysts expressed disappointment with the decision, questioning whether gradual tightening is sufficient to restore credibility and price stability after years of unorthodox policies.