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Turkey’s Recently Decapitated Central Bank Gives Erdogan Massive Rate Cut
Markets were on edge headed into today's CBT meeting.
After all, it was just three weeks ago when Turkish President Recep Tayyip Erdogan unceremoniously ousted his central bank governor for the high crime of not cutting rates. Cetinkaya's dismissal dashed hopes that Erdogan had been humbled by the Istanbul mayoral loss and presaged the imminent return of Erdogan-o-mics, as the autocrat's unorthodox views about FX, rates and inflation are not-so-affectionately known among EM watchers.
Thanks to
If you understand why the Lira would rally, could you elaborate? It doesn’t make much sense to me, unless there’s intervention of some sort.
well, the cut was less than the 600bp some people were projecting and remember, this is a world where the hunt for yield is all that matters. it’s carry mania and there’s some return to be had here
Fair enough. Thanks!