Turkey delivers big rate hike to defend currency

|By:, SA News Editor

The Turkish central bank hikes its overnight lending rate to 12% from 7.75% and the overnight borrowing rate to 8% from 3.5%, in a surprisingly strong move to defend the country's embattled currency and perhaps alleviate the declines in emerging market currencies.

Analysts say Turkey's decision is significant since the central bank had come across as reluctant to take action - indeed, it's political independence was not considered a certainty.

The turkish lira jumps more than 3% on the move, which has propelled Dow futures sharply higher and should spark a strong open for Asia's equity markets.