Meanwhile, In Turkey…

He did it. Recep Tayyip Erdogan succeeded in bringing rates in Turkey back down into the single digits. The country's hopelessly beholden central bank on Thursday cut rates another 150bps, bringing the policy rate to 9%. Promises made, promises kept, I suppose. Erdogan, self-declared "enemy of interest rates," has long insisted that rates should be below 10% in Turkey, and that he fully intended to get them there. As far as I'm aware, it's a purely symbolic target. Elections are coming, but ev

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3 thoughts on “Meanwhile, In Turkey…”

It’s ironically appropriate that he did so on Thanksgiving. (Don’t make me explain it).

@H is my understanding correct that Turkey’s super-inflation is caused by the slumping lira? If so, what would you propose doing to solve this? Simply increasing interest rates to whatever level necessary?

H-Man, if Erdogan was the Fed, we would have been cutting rates for some time which would simply have provided more fuel for inflation with cheap money. I think we all know how that would have turned out. The joys of being a dictator.