Turkey Defies Market Expectations for Rate Rise, Lira Plunges

The video discusses the Turkish Central Bank's failure to assert its independence, leading to market instability. President Erdogan's control over economic policy, including his aversion to high interest rates, has influenced the Central Bank's actions. This has resulted in negative market reactions, with the Turkish lira hitting record lows and foreign investors concerned. Despite government assurances of the Central Bank's independence, market expectations for rate hikes remain unmet, causing further economic uncertainty.

What was the market's reaction to the Central Bank's failure to raise rates as expected?

In what ways did the new head of the economy, Baratz Albayrak, address the markets' concerns?