Turkish interest rates jump to 40% as central bank gets tough on inflation

Turkey’s central bank raised interest rates to 40% on Thursday, delivering a bigger-than-expected hike that sparked a rally in the lira.

Battling inflation that it sees running at an annual pace of 65% by the end of the year and 36% by the end of 2024, the Monetary Policy Committee (MPC) increased its one-week repo rate by 500 basis points from 35%.

Investors…