Traders work at their desks on the floor of the Borsa Istanbul in Istanbul on May 22, 2018. AFP / OZAN KOSE
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Turkey joined a string of emerging-market central banks whose interest-rate decisions have surprised investors, tightening policy Thursday for the third time in less than two months.The decision came three days after an inflation report showed consumer prices rose 12.15 percent in May from a year earlier, with the worst core reading on record and producer prices advancing more than 20 percent.No one in a Bloomberg survey expected an increase of the magnitude Turkey delivered, raising its one-week repo rate by 125 basis points to 17.75 percent.The central bank responded to the rout by first raising its late-liquidity window by 300 basis points at an unscheduled meeting, and then announcing a decision to to simplify its interest-rate regime, setting the one-week repurchase rate as its main funding tool.
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