Investors Raise Bets on Turkish Central Bank Rate Hike

Investors have increased bets that Turkey's central bank will raise interest rates, according to market data reported by @business. Higher energy costs have kept inflation elevated while a political crisis has added pressure on the lira.

Options and futures markets now reflect a higher probability of a rate increase at upcoming policy meetings. The same factors—energy-driven inflation and currency weakness—have been cited by traders as the main reasons for the shift in positioning.

The lira has faced renewed selling pressure amid the political developments. No specific timing or size of any potential rate move has been confirmed by central bank officials.