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We think the Turkish lira’s stability will prove short-lived

For the first time in several months, the lira remained subdued following an interest rate announcement from Turkey’s central bank, perhaps as the decision to keep rates on hold was widely anticipated. We expect further reductions of the one-week repo rate later this year, which leads us to think that the lira will weaken against the US dollar in 2022.
Joseph Marlow Assistant Economist
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