"I'm real. I'm a real dictator!", Donald Trump will exclaim, Pinocchio style, if ever he manages to emulate Turkish President Recep Tayyip Erdogan's iron grip on domestic monetary policy.
Turkey slashed rates by another 200bps on Thursday, 50bp more than consensus was expecting, bringing the total amount of easing under Governor Murat Uysal to 1,200bps. Uysal delivered the largest cut in history shortly after being installed in July, after Murat Cetinkaya was unceremoniously ousted for refusing to ease fast enough to satisfy an impatient Erdogan.
"We will be moving to single digits in interest rates in 2020", the incorrigible autocrat declared, earlier this week in the lead up to CBT's final scheduled meeting of the year. Analysts have habitually underestimated CBT's penchant for placating NATO's favorite autocrat. Of the 1,200bps in cuts delivered over the last six months, consensus has predicted just 1,000 of them.
Inflation has come down markedly from the extremely hot levels seen during last year's currency crisis, and generally speaking, the lira has remained stable, even amid the October geopolitical earthquake that accompanied Erdogan's cross-border incursion in Sy
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