Lira sell-off adds pressure on the CBRT, protests in Poland

Last week's decision by Turkey's central bank to tweak the interest rate 'corridor' has come back to bite hard with the lira falling sharply this week. This has raised talk that policymakers may be forced into an emergency interest rate hike, although we think the bar for this is high. Meanwhile, protests have erupted in Poland in recent weeks and the economic damage will mount the longer that they last. Rising discontent among the public may presage a political shift in the coming years.