Sub-Zero ‘Real’ Rates Put Turkey Central Bank in a Bind

Sub-Zero ‘Real’ Rates Put Turkey Central Bank in a Bind
People wait to change money at a currency exchange office in front of the underconstruction, Taksim Square Mosque on Aug. 29, 2018 in Istanbul, Turkey. Chris McGrath/Getty Images
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LONDON—Turkey’s central bank may take a break from raising interest rates this week having nearly doubled them already this year, but with inflation at 25 percent and climbing markets think more rate hikes are inevitable.

For once the central bank is meeting with the lira going up rather than tumbling down, but as the graphics below show there are plenty of issues to grapple with.