Erdogan believes if you lower rates it will lower inflation. What a crazy idea. Look at how well inflation is under control in Venezuela and Argentina. At the same time, in negative rate territory (Europe), inflation is simply exploding with vigor to the upside.
Nevertheless, Turkey’s central bank defied the rhetoric and hiked rates from 13.5% to 16.5% — an increase of 300bps.
The Lira had been down 4.5% and now it’s marginally higher v the dollar, a titanic move in FX terms.
The Nasdaq seems to like it, as it’s rallying hard off the lows.
See, everything is just fine.
yes we should all thank Erdogan
“Gentlemen, as Ottomans scholars have written: The Turk is a spiritual barbarian, doesn’t respect god, a fraud and dirty. The Turk is like a dog; he acts wild until he has to face his adversary, then he runs away. The only effective way to deal with the Turk is with a fist and determination. But such qualities are absent from the elected and non-elected political leaders of Europe. You’ve sold yourselves out to the Ottoman Erdogan.”” – General Synadinos
And he’d be in a position to know – https://www.youtube.com/watch?v=DsIgRj8N5nM
Isn’t this that guy who single-handedly faced down a military coup? Wouldn’t bet against him.
Fly….correlation with the NASDAQ? That’s quite a reach. I did see something about Turkey recently repatriating their gold reserves from the infidel USA. Barbaric turkeys love gold.