Some Investors Want a Recession in Turkey

Amid tussle over rate increases, hopes grow for a downturn to douse inflation

For some foreign investors, recession would be the best thing that could happen to Turkey.

That counterintuitive notion is based on a view that a shrinking economy is one of the few things that could damp Turkey’s high inflation.

Turkey’s central bank took a swing at inflation on Thursday, raising its main interest rate to 24% from 17.75%...