Political Issues Rattle EM Currencies and Markets

Global Macro Strategy

Callum Henderson

Macroeconomics

<p>The Central Bank of the Republic of Turkey (TCMB) hiked its late liquidity window rate by 300bps to 16.50%, following an extraordinary meeting of its monetary-policy committee. TCMB reportedly described the move as a 'powerful monetary tightening' and said it remained ready to continue using all available policy instruments. In line with this - and somewhat surprisingly given his recent comments, which if anything added to the sell-off in the Turkish lira (TRY) - Turkish President Recep Tayyip…</p>

The Central Bank of the Republic of Turkey (TCMB) hiked its late liquidity window rate by 300bps to 16.50%, following an extraordinary meeting of its monetary-policy committee. TCMB reportedly described the move as a 'powerful monetary tightening' and said it remained ready to continue using all available policy instruments. In line with this - and somewhat surprisingly given his recent comments, which if anything added to the sell-off in the Turkish lira (TRY) - Turkish President Recep Tayyip…

Turkey - If Rate Hikes Fail, Erdogan May Take More Drastic Action