{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='Interest rate rise gives Turkish currency only brief lift as investors worry market volatility will continue' data-url='/boclips/videos/5c54c4a3d8eafeecae16a3b5' data-video-url='/boclips/videos/5c54c4a3d8eafeecae16a3b5' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nInterest rate rise gives Turkish currency only brief lift as investors worry market volatility will continue\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003eTurkey's central bank raised all of its main interest rates on Wednesday, following an emergency policy meeting to defend a crumbling lira.The bank raised its overnight lending rate to 12 percent from 7.75 percent, its one-week repo rate...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003eTurkey's central bank raised all of its main interest rates on Wednesday, following an emergency policy meeting to defend a crumbling lira.\u003cbr/\u003eThe bank raised its overnight lending rate to 12 percent from 7.75 percent, its one-week repo rate to 10 percent from 4.5, and its overnight borrowing rate to 8 percent from 3.5.\u003cbr/\u003eThese were much sharper moves than economists had forecast. \u003cbr/\u003eIn a statement, the bank said it would maintain tight monetary policy until the inflation outlook showed a clear improvement. \u003cbr/\u003eThe bold action gave the national currency only a brief lift however on Wednesday with investors worried the aggressive interest rate increases may not work in bringing an end to the market volatility.\u003cbr/\u003eAnalysts said the future remains murky for Turky and the lira with concerns over domestic growth in light of the big interest rate hike, the country's political outlook and anticipated further stimulus reductions by the US Federal Reserve. \u003cbr/\u003e\"We will see some negative impact of this rate hike decision over growth, especially GDP growth, because the credit rates will probably increase, borrowing costs will increase,\" said economist, Ozlem Demirci. \u003cbr/\u003eIn early afternoon trading, the Turkish lira was down 2.3 percent against the dollar at 2.2296 Turkish lira. \u003cbr/\u003eThat means it is more or less back where it was late on Tuesday before the rate hikes.\u003cbr/\u003eBusiness owners in Istanbul's iconic Covered Bazaar noticed the effect of the Central Bank's move, which brought down the US dollar from a record high of 2.30 to the Turkish lira. \u003cbr/\u003e\"Because the US dollar has dropped, there are more people buying it today,\" said Burak Aynici who works at a currency exchange bureau. \u003cbr/\u003e\"Yesterday and the day before people were selling their dollars but today, we've seen an increase in the purchase of foreign currency\" he told AP Television.\u003cbr/\u003eThe Turkish lira has hit record lows in recent weeks on concerns over global growth, the prospect that a police bribery scandal might destabilise the government, and the change in the monetary policy stance of the US Federal Reserve.\u003cbr/\u003eTurkey, like other emerging economies, has seen an influx of foreign investment over the past few years as the Fed and other central banks have pumped the prime to shore up their economies. \u003cbr/\u003eNow that the Fed has begun the process of reducing its stimulus, much of that money is expected to be withdrawn.\u003cbr/\u003eA big worry is that higher borrowing rates will make a big dent in Turkey's economic activity. \u003cbr/\u003eMany economists think growth will more or less halve this year to 2 percent.\u003cbr/\u003eThat helps explain why the Turkish stock market reversed earlier gains to trade 1.2 percent lower.\u003cbr/\u003eThe action by the central bank came in the face of pressure by the Turkish government, which wanted rates to remain low in order to shore up growth.\u003cbr/\u003eAhead of the decision, Prime Minister Recep Tayyip Erdogan reiterated his view that he was opposed to any interest rate hike while insisting that he respected the central bank's independence.\u003cbr/\u003e1. Wide of the grand bazaar\u003cbr/\u003e2. Mid of tourists outside shop\u003cbr/\u003e3. Mid of tourists looking at shop window\u003cbr/\u003e4. Mid French-speaking tourists looking at fabric\u003cbr/\u003e5. Mid trader showing tourists fabric\u003cbr/\u003e6. Close of fabric\u003cbr/\u003e7. Wide exterior of jewellery shop\u003cbr/\u003e8. Mid of jewellery shop window\u003cbr/\u003e9. Close of jewellery in shop window\u003cbr/\u003e10. SOUNDBITE: (Turkish) Aret Kapu, Gold seller: \u003cbr/\u003e\"We think the hike in interest rates was meant to decrease the demand on the US dollar. I believe the effect will be huge. I've been working at the (covered) bazaar for 25 years and this is what I predict.\"\u003cbr/\u003e11. Wide of currency exchange office\u003cbr/\u003e12. Close of exchange rates on display outside currency exchange office\u003cbr/\u003e13. Mid of Burak Aynaci, trading in currency exchange office\u003cbr/\u003e14. SOUNDBITE: (Turkish) Burak Aynaci, Currency Exchange office worker: \u003cbr/\u003e\"Because the US dollar has dropped, there are more people buying it today. Yesterday and the day before people were selling their dollars but today, we've seen an increase in the purchase of foreign currency.\"\u003cbr/\u003e15. Close of Aynaci holding wads of US dollars\u003cbr/\u003e16. Mid of US dollars going through counting machine\u003cbr/\u003e17. Close of US dollars\u003cbr/\u003e18. Mid of economist Ozlem Demirci\u003cbr/\u003e19. SOUNDBITE: (English) Ozlem Demirci, Economist:\u003cbr/\u003e\"Of course, we will see some negative impact of this rate hike decision over growth, especially GDP growth, because the credit rates will probably increase, borrowing costs will increase. We didn't see so aggressive movement in bond market today but gradually we will see some increase because on top of (Turkey's) Central Bank's tighter monetary policy, Fed's tapering moves also contributes negatively to the borrowing costs.\"\u003cbr/\u003e20. Close of Demirci'shands\u003cbr/\u003e21. SOUNDBITE: (English) Ozlem Demirci, Economist:\u003cbr/\u003e\"If it's impact turns to positive in terms of currency permanently, currency depreciation ďż˝ true exchange rates, on the positive side, exchange rate pass through, we may see inflation starts to decline by the second half of the year. We will see it due to base effect but maybe it will work for breaking the increasing inflation expectations. That will be the positive side, of course.\"\u003cbr/\u003e22. Wide of currency exchange bureau\u003cbr/\u003e23. Mid of currency exchange rates on display \u003cbr/\u003e24. Mid of sign reading (English) \"Change Office. 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