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Turkish Lira, Bonds Fall as Minimum Wage Hike Fuels Inflation Fears

Turkish Lira, Bonds Fall as Minimum Wage Hike Fuels Inflation Fears
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Thursday, 28 December, 2023, 23:48

Turkish government bonds tumbled and the lira hit a new record low after a 49% minimum wage hike, that threatens to fuel inflation and puts investors on alert for pre-election populist measures from President Recep Tayyip Erdogan.

The government raised the net minimum wage for 2023 to 17,002 liras ($578), a level which Goldman Sachs Group Inc. and Morgan Stanley had suggested would force the central bank to further tighten monetary policy.