Is the Turkish central bank shifting back to orthodoxy?

Last week’s aggressive interest rate hike in Turkey has reduced the risk of a more acute balance of payments crisis and helped to restore some of the central bank’s (CBRT) damaged credibility. But the CBRT would need to shrug off pressure from President Erdogan and keep real interest rates high for a prolonged period before investors can be sure that there has been a shift back to orthodoxy.

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