"Lira jumps as Turkish central bank hikes rates to 24 percent"

From CNBC:

• The last few months have been nothing short of a roller coaster ride for Turkish assets, which have seen a massive sell-off thanks to investor fears over the central bank's independence and a political spat between Turkish President Recep Erdogan and Washington.
• The lira has fallen some 40 percent in value against the dollar since the year's start, prompting fears of contagion amid a wider emerging markets shakeup.

Central Bank of Turkey increased its benchmark rate on Thursday to 24 percent, a hike of 625 basis points from the previous rate of 17.75 percent. The Turkish Lira firmed to beyond 6.1 against the dollar on the back of the decision.

The move, which exceeded market expectations of an increase of between 300 and 400 basis points, boosted the lira and saw Turkish sovereign dollar bonds gain across the curve to their highest level since the end of August. The lira rose to 6.0030 against the dollar immediately following the announcement....MORE