Turkey Surprises With ‘Brave’ Rate Hike to Win Back Markets (3)

Turkey raised its main interest rate, a surprise move to reassure investors after domestic turmoil and US tariff uncertainty triggered a sell off in the lira.

The Monetary Policy Committee hiked its one-week repo rate to 46% from 42.5%. Only three of 23 analysts surveyed by Bloomberg had predicted a hike — with Goldman Sachs Group Inc. and Istanbul-based Is Asset Management anticipating the precise increase.

“Monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen,” the MPC, led by Governor Fatih Karahan, said in a statement accompanying the decision.

The Turkish ...