Turkish Lira Plunges as Central Bank Unexpectedly Keeps Rates Steady

The video discusses recent developments in the equities and bond markets, highlighting a significant increase in the 10-year local benchmark yield. It critiques the Central Bank's missed opportunity to reinforce its credibility through a rate hike, despite high inflation rates. The Central Bank's strategy of relying on fiscal policy and past rate hikes is questioned, as it may lead to a vicious cycle of inflation and capital flight. Political influences, particularly from the President, are also examined as factors affecting the Central Bank's decisions.

What was the President's stance on interest rates and how did it affect investor confidence?

What challenges does Turkey face in managing inflation and investor confidence?