The Turkish lira has been among the hardest hit EM currencies this week amid the global market sell off and, while concerns that the shift in policymaking is unravelling are probably overdone, there's a growing risk that the CBRT will be forced to hike interest rates to reassure investors. Meanwhile, in Central and Eastern Europe, the combination of rising virus cases, mounting pressures on health systems and the slow vaccine rollout is prompting a move to tighten containment measures that will depress activity for longer.
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