Turkish central bank faces key test on economic turnaround after Erdogan's reelection
Turkey's central bank faces a key test on turning to more conventional economic policies to counter sky-high inflation after President Recep Tayyip Erdogan’s recent reelection ANKARA, Turkey -- The Turkish central bank faces a key test Thursday on turning to more conventional economic policies to counter sky-high inflation after newly reelected President Recep Tayyip Erdogan gave mixed signals about an approach that many blame for worsening a cost-of-living crisis. It is the bank's closely watched first interest rate-setting meeting since the longtime leader named internationally respected officials to head the bank and the finance ministry. While a sharp rate hike is expected, it’s not clear if it will be enough to ease market concerns. The appointments were seen as a sign that Turkey would change course and abandon Erdogan’s unorthodox belief that lowering interest rates fights inflation. Traditional economic theory says just the opposite, and central banks around the world ...