Turkey central bank ramps up interest rates to 40%

Turkey's central bank delivered a larger-than-expected 500 basis point interest rate hike on Thursday, lifting its benchmark to 40% but also flagging that the pace of monetary tightening was set to slow down and the end of the cycle was in sight.

Below reaction from analysts to the decision:

Liam Peach, Capital Economics, London

"(Turkey's central bank) suggested that it is very close to the end of the tightening cycle. A final 250bp hike in December now looks likely. For the central bank to have any chance of achieving single digit inflation this decade, rates will need to stay at this level for some time."