Low interest rates are spurring growth, but Turkish businesses are struggling with debt as the country’s currency hits new lows against major hard currencies. Could Turkey become a flashpoint for another economic crisis?
The country's central bank has increased its key lending rate for the third time in less than two months to shore up the Turkish lira amid spiraling inflation, and to assert its independence from political pressure.
The Turkish national currency has tanked again just one day after the nation's central bank raised its top interest rate. The move sent the lira soaring only briefly, indicating that market uncertainties prevail.
The US Federal Reserve has raised its key lending rate by another quarter-point — the second time in 2018, and aimed at staying ahead of growing inflation amid strong growth and robust employment.
Recep Tayyip Erdogan has won every election in Turkey for the past 16 years. The current economic crisis means he is now in danger of losing his parliamentary majority — and re-election as president is far from certain.
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