The five-day ceasefire in Syria agreed by Turkey and the US yesterday has prompted a rally in Turkish markets and probably means that the central bank will press ahead with another large interest rate cut next Thursday. But the calm could prove temporary and the charges brought against Halkbank this week underline the vulnerability of the banking sector. Elsewhere, comments today from Russia’s central bank governor mean that we now expect a 50bp reduction (previously 25bp) in interest rates next week, to 6.50%.
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