Turkish financial markets have come under pressure this week amid concerns that a shift in the central bank’s reserve requirement policy heralds more aggressive monetary easing. These developments support our view that the lira has further to fall and that the central bank’s easing cycle will ultimately have to be reversed before long. Meanwhile, the hawkish tone of the minutes of the Polish central bank’s July meeting, as well as strong activity figures for July, suggest that the monetary easing markets are pricing in is unlikely to materialise.
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