Turkish central bank sharply hikes all main interest rates

Reuters News
Posted: Jan 28, 2014 5:13 PM

ISTANBUL (Reuters) - Turkey's central bank sharply raised all of its main interest rates on Wednesday, bowing to market pressure to stem a slide in the lira fuelled by political turbulence at home and fears about cuts in U.S. monetary stimulus.

At an emergency policy meeting, the bank raised its overnight lending rate to 12 percent from 7.75 percent, its one-week repo rate to 10 percent from 4.5 percent and its overnight borrowing rate to 8 percent from 3.5 percent.

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(Reporting by Seda Sezer and Daren Butler; Editing by Nick Tattersall)