Turkey reopens ‘self-inflicted’ wounds with its unorthodox monetary policies

Our advisor, Tim Fox is sharing his view in the current global equity markets in the UAE’s leading news service, “The National”.

Last week provided perhaps the most vivid illustration of such “self-inflicted” damage with the firing of Turkish central bank governor Naci Agbal just hours after he raised interest rates by 200 basis points to 19 per cent. This has triggered a sharp sell-off in the Turkish lira and in the stock market as well as a steep rise in Turkish bond yields when markets reopened at the start of last week. It also caused Turkish money markets to seize up. Markets are concerned that the new central bank chief could reverse recent monetary policy tightening. Read more here.