Market Super ‘Impressed’ With Rate Hike From Turkey As Everyone Temporarily Forgets Who Is Really In Charge Over There

Market Super ‘Impressed’ With Rate Hike From Turkey As Everyone Temporarily Forgets Who Is Really In Charge Over There

Well, I'm not exactly sure this was a "surprise" (as it's being billed), but CBT hiked 125bps on Thursday (one-week repo - which they've reverted to following last week's announcement re: the simplification of policy - to 17.75% from 16.5%). The lira is obviously up handily on the news: As Bloomberg's Benjamin Harvey notes, 125bps was 25bps more than the highest prediction among folks surveyed, but remember: CBT backed themselves into a corner on this last week when officials signaled that t
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2 thoughts on “Market Super ‘Impressed’ With Rate Hike From Turkey As Everyone Temporarily Forgets Who Is Really In Charge Over There

  1. It is incredible to see that TRY appreciated more than 10% against a strong USD.

    Some ‘investors’ are giving a push to keep the islamists in power in Turkey. But, the short term govt and corporate debt (corporate debt is guaranteed by the Turkish Treasury, btw, even though nobody from Bloomberg acknowledges)

    Current account deficit > USD 50 billion, short term debt > USD 300 billion, net reserves ~ USD 17 billion.

    Counting down for the Minsky moment.

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