"Turkish Central Bank Shocks Markets with 500-Point Interest Rate Hike to 50%"

Turkey's central bank surprised the market by raising interest rates by 500 basis points to 50%, citing a deteriorating inflation outlook and pledging further tightening if necessary. The move, ahead of local elections, signaled the bank's independence and determination to tackle soaring inflation. The lira rallied and bonds also saw gains in response. The bank has now raised its key one-week repo rate by 4,150 basis points since last June, and indicated it will maintain a tight monetary stance until a sustained decline in inflation is observed.