Skip to main content

The lira’s fall and what it means for inflation and rates

The fall in the Turkish lira seen in the past few weeks doesn’t look large enough (yet) to prevent inflation from easing later in the year and to prompt a monetary policy response, not least given that government pressure for looser policy seems to be building. But if past form is anything to go by, a further drop in the currency, to about 4.25/$, in the next week or two would probably trigger interest 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:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access