The Turkish central bank kept its key interest rates unchanged today, but there are signs that policymakers have started to tighten monetary conditions via the interest rate “corridor” to counter the recent sell-off in the lira. High inflation and a large current account deficit mean we think policy is likely to remain tight. In contrast, in the Czech Republic, where interest rates were also left unchanged today, low inflation will allow monetary policy to remain extremely accommodative over the coming years.
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