Turkish stocks and bonds moved in opposite directions Tuesday as investors braced for an anticipated interest rate increase. The IMKB100 index fell 1.3 percent, closing at 37,464.4 points, while the yield on the benchmark 2008 government bond edged up to 18.3 percent, its highest since January 2005.
Markets have been unsettled since official data released last week showed inflation climbing to 9.86 percent in May, surpassing forecasts for the second consecutive month and raising doubts about Türkiye's five-percent year-end inflation goal.
The central bank announced over the weekend that its monetary policy committee would meet Wednesday to review the inflation data. A rate increase from the current 13.25 percent would be the first in five years, reversing a prolonged run of cuts.
The government pushed back against criticism from business groups, insisting economic discipline would be maintained. Prime Minister Recep Tayyip Erdogan pledged that hard-won economic gains would be protected.
Türkiye has rebuilt its economy following severe financial crises in 1999 and 2001 and is currently operating under a three-year IMF stand-by arrangement backed by a 10-billion-dollar loan, which succeeded an earlier 16-billion-dollar program.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.