ISTANBUL Jan 31 Turkey's interest rate hike
will alleviate some of the pressure on its sovereign
creditworthiness and help curb lira volatility but will hurt its
economic growth prospects, rating agency Moody's said on Friday.
"While the central bank's action contains the country's
currency volatility, reduces financial stress in the economy and
thus limits the likelihood of a balance-of-payments crisis, it
comes at the cost of significantly weakening Turkey's economic
growth prospects," Moody's said in a statement.
(Reporting by Seda Sezer; Editing by Nick Tattersall)