#TRY #Turkey #rates #inflation
The Lira drifts on
Before the betting decision, the Turkish lira resumed its run up to 27. Although the market hopes for an increase in the rate from 15 to 20%, this is still not enough to somehow match the inflationary situation, which does not yet imply stable inflation below 2-3% per month. The real rate will still remain negative. The financial system operates in a rather distorted reality, when the average deposit rates in lira remain significantly higher than the average loan rates…
PS: The loss of income from the “grain deal” is also likely to put pressure on the lira, given the persistently negative current account. @ESG_Stock_Market