emerging markets lira turkey

Lira Plunges To New Record Low As Erdogan Delivers Insane, Deadpan Bloomberg Interview

"Yes."

Remember how, on Sunday, Turkish Sultan (a man who's never met a "good" Kurd or a rate hike that he liked) Recep Tayyip Erdoğan suggested that he might just need to force CBT to cut rates after he gets this farcical "election" out of the way next month? https://twitter.com/heisenbergrpt/status/995632837842882560 Specifically, this is what he said in Istanbul before leaving for a visit to the U.K.: I called for lower interest rates before and I will do so again. Especially after the June 24 election the form and levels of rates will develop differently. That came less than 48 hours after he called interest rates "the mother and father of all evil." As I wrote elsewhere over the weekend, every time he says something like that, the market (and analysts) lose more faith in the increasingly far-fetched prospect of him conceding that his "theory" about rates, FX, inflation and the economy more generally, doesn't make any goddamn sense. Simsek's attempts to play down the central bank's helplessness notwithstanding, it is abundantly clear that they do not have the leeway to do what's necessary to stop the bleeding. That LLW hike was a joke and the subsequent effort to provide ban
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11 comments on “Lira Plunges To New Record Low As Erdogan Delivers Insane, Deadpan Bloomberg Interview

  1. Harvey Darrow Cotton says:

    The Justice and Development Party is Islamist, but it is also supposed to be the pro-business Party in Turkey. You would think Erdogan would know how to business better.

  2. tambatheman says:

    “Any semblance of independence is out the window”! Really? Is this what frightens you? If you thought Turkey under different regimes had an independent central bank before than you are hilarious, with or without a funny hat. Central banks while independent in the west have not exactly proven to be a beacon of economic and price stability. 2008 should be enough to prove the point.

  3. […] Trump were a rates strategist (and you can bet that just like his autocratic soulmate in Turkey, he’s going to pretend to be a rates strategist in the event Jerome Powell ends up […]

  4. […] amid Erodgan’s incessant rantings about rates. On Tuesday morning, on Bloomberg TV no less, he literally suggested that he’s going to commandeer the central bank. Needless to say, that sent the lira to fresh […]

  5. […] Erodgan’s incessant rantings about rates. On Tuesday morning, on Bloomberg TV no less, he literally suggested that he’s going to commandeer the central bank. Needless to say, that sent the lira to fresh […]

  6. […] Turkish lira – which hit another all-time low on Tuesday after Erdogan told Bloomberg TV that he’s going to take over the central bank (basically) – got some relief on Wednesday on […]

  7. […] Turkish lira – which hit another all-time low on Tuesday after Erdogan told Bloomberg TV that he’s going to take over the central bank (basically) – got some relief on […]

  8. […] monetary policy. You can watch that interview for yourself here and/or read my longer commentary here, but suffice to say it pushed the beleaguered lira to a fresh all-time low and confirmed […]

  9. […] monetary policy. You can watch that interview for yourself here and/or read my longer commentary here, but suffice to say it pushed the beleaguered lira to a fresh all-time low and confirmed […]

  10. […] be an absolutely terrible idea for him to go through with the promise he made last week when he told a shocked Bloomberg anchor that he’s going to basically name himself central bank head, but that’s all […]

  11. […] views on FX, inflation and rates become enshrined in monetary policy as he suggested in a laughably deadpan Bloomberg interview from last month?). The lira’s good week (it pared gains on Friday, but […]

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