What does Turkey need to do to bring inflation down?

Turkey’s central bank (CBRT) looks set to hike interest rates further this week, and the experience from other EMs suggests that it will need to keep real interest rates elevated for several years to bring inflation down on a sustained basis. Lowering inflation would, if achieved, provide a more supportive environment for the lira and could bring down local currency bond yields significantly.  
Note: Chief Emerging Markets Economist William Jackson and Senior Emerging Markets Economist Jason Tuvey will be discussing the outlook for monetary policy in Turkey and the rest of the emerging world after the CBRT meeting on Thursday at 14.00 GMT. If you haven’t done so already, register here.
Jason Tuvey Senior Emerging Markets Economist
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