Kibkom North Cyprus Forum

The raising of interest rates seems to be having the desired effect on the TL

Its strengthened against the £ recently

ultimately does this mean the rate of inflation should begin to fall or are we all doomed!

I read they have also reduced the fx they need to buy.

https://think.ing.com/articles/monitori ... of-turkey/


Holders of tl have been hammered for 10 years. But there are historical periods when the carry trade was profitable between 2005-2010 the tl was flat against £ and interest was high..

Ing are saying try is their number 1 carry trade . Turkish central bank are confident try will strengthen...but given the last 10 years many will be sceptical of that.

Unless there is political pressure interest rates in turkey will stay high because they need structural reforms.as well to reduce inflation. A huge inflationary problem is the overvalued goverment projects that get dished out with all sorts of attached price guarantees like the amount of revenue a new bridge will generate..cant see that changing anytime soon.

Under 44 to £1