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Turkish central bank faces key test on economic turnaround after Erdogan's reelection
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A man pulls a trolley with goods in a street market in Eminonu commercial district in Istanbul, Turkey, Friday, June 16, 2023. The Turkish central bank faces a key test Thursday June 22, 2023, 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. - photo by AP Photo/Francisco Seco
ANKARA, Turkey (AP) — 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.