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Turkey’s U-turn: action will speak louder than words

Optimism about a shift towards more orthodox economic policymaking in Turkey has taken hold following the appointment of Mehmet Simsek to the cabinet this weekend. Recent developments look encouraging but the next big test will be whether President Erdogan loosens his grip on monetary policy and gives the central bank freedom to raise interest rates. Even if that happens, investors will wait some time to assess whether this is a permanent shift in policy or a re-run of the Agbal-era in 2020-21.

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