What came next was absurdly obvious

It was the most unorthodox of monetary policy yet one that you couldn’t place the bet on.

Turkey’s Erdogan fires a bunch of central bank governors because they expressed reluctance towards lowering interest rates.

Lo and behold, a week later, Turkey’s 🇹🇷 central bank cuts rates by 200 basis points. Not 50 or a 100, but 200.

The reaction: Turkish 10 year bonds are unchanged at 19% and Turkish bank stocks little affected.

October 22, 2021
by Rob Zdravevski


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