Turkey shifts stance on rates

Turkey has leapfrogged Iceland as the European state with the highest interest rate after the country's central bank backed a 50 basis-point hike on Thursday.

The central bank raised its benchmark overnight borrowing rate from 15.25% to 15.75%. The overnight lending rate also rose by half a point to 19.75%.

The hike follows 225 basis points-worth of cuts between March and September last year. The central bank decided to reverse the trend and raise rates for the first time since July 2006 on t