The Turkish lira has steadied in recent days, but the sharp decline seen earlier this month has reinforced concerns about the risks posed by the widening current account deficit. If the government launches further stimulus to boost growth, as has been rumoured, this could cause the external shortfall to widen further, ultimately resulting in even steeper falls in the lira and possibly rate hikes.
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