Turkey hikes interest rate to 46% amid turmoil over Imamoglu’s arrest

ANKARA — The Central Bank of Turkey on Thursday hiked interest rates to 46% from 42.5%, marking a return to monetary tightening after a year-long pause. The move comes amid economic turmoil triggered by the arrest of Istanbul Mayor Ekrem Imamoglu.

Thursday’s meeting was the first since Imamoglu, a presidential contender from the main opposition Republican People’s Party (CHP), was detained on March 19 and subsequently jailed on March 23 on corruption charges, which he denies. Government…