The Fragile Five Fight Back: What Happens When You Double Your Interest Rates Overnight? |
| January 30, 2014 | January 2014 Bond Updates |
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If nothing else, you have to admire the bravado. Faced with growing concern about the durability of emerging markets, yesterday Turkey hoisted one of its key interest rates, the benchmark weekly repo rate, from 4.5% to 10%. Where most central banks agonize over whether or not to put up rates by a quarter of a percentage point, Turkey more than doubled, in a bold attempt to tackle inflation and defend its plummeting currency. |
| View more at: http://www.forbes.com/sites/chriswright/2014/01/30/the-fragile-five-fight-back-what-happens-when-you-double-your-interest-rates-overnight/ |
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