The drop in Turkish inflation in March, coupled with the sharp downturn in the economy, means that the central bank is likely to follow up last month’s emergency 100bp interest rate cut with further easing. But Turkey’s large external debts leave the economy vulnerable to tightening external financing conditions and, if pressure continues to mount on the lira, the scope for further policy support will be limited.
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