Turkish Central Bank Pledges Policy Action to Control Inflation

The transcript discusses the Central Bank's promise to reshape monetary policy amidst rising inflation and economic challenges. Investors expect interest rate adjustments to counter inflation, but political pressures, particularly from President Erdogan, hinder the Central Bank's actions. The situation has led to a crisis of confidence among investors, who adhere to the orthodox view that higher inflation requires increased borrowing costs to slow the economy.

What political pressures are affecting the Central Bank's ability to act?

What is the conflict between President Erdogan's view and the investors' perspective on interest rates?