Concerns are mounting that Turkey will be faced with a fresh wave of “hot” capital inflows. As it happens, we don’t think this is a credible threat – we expect a fresh escalation of the euro-crisis to cause capital inflows to dry up (again). But it is the key issue for policymakers at the moment and is likely to result in interest rate cuts over the coming months to reduce the carry on the lira.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services