Turkey's central bank hikes interest rates again as it tries to tame eye-watering inflation

Turkey’s central bank has delivered another huge interest rate hike as it tries to curb double-digit inflation that has left households struggling to afford food and other basic goods. The bank on Thursday increased its policy rate by 5 percentage points to 40% to combat inflation that hit 61.36% last month. It's the bank's sixth interest rate hike in a row targeting inflation that hit an eye-watering 61.36% last month. President Recep Tayyip Erdogan previously backed an unorthodox policy of cutting interest rates to fight inflation. That runs counter to traditional economic thinking, and many blamed Erdogan’s unusual methods for a cost-of-living crisis. After his reelection, Erdogan appointed a new economic team that has been reversing the low-rate policy.