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Forex pairs in this Article » USD/JPY
FXstreet.com (Bali) - The Turkish rate decision has surprised every single trader in the planet, after the central bank decided to lift the overnight rate to 12% from 7.75, and as a result, both the lira and the 'risk on' trades complex such as AUD, NZD, are getting a solid boost, while the Jaapanese Yen is suffering the most as the Nikkei 225 futures soar.

The move has taken by surprise global markets, which had only been expecting a rise to 10%, thus a 2% additional hike sends a huge signal that central bankers in emerging markets seem to be ready and non-hesitant to aver any crisis by any monetary means within their reach, even if that implies having to lift rates by more than 400bp in one single meeting, quite extraordinary.

The Turkish central bank said it decided to implement strong tightening for price stability and to simplify operational framework, adding that it will maintain tight monetary policy until clear improvement in inflation outlook. Sees inflation at 5% in mid 2015 due to this stance.
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