The question is whether he can keep his job and patiently battle against near 15 percent inflation despite Erdogan’s repeated criticism of high rates. After all but abandoning Turkish assets in recent years, some foreign investors are giving the hawkish monetary stance and other recent regulatory tweaks the benefit of the doubt. Some long-term investors “are cozying up to the idea of being long Turkey but it’s a long process,” said one banker, requesting anonymity. But a day after the central bank promised high rates for an “extended period,” Erdogan told a forum on Friday he is “absolutely against” them. The president fired the last two bank chiefs over policy disagreement and often repeats the unorthodox view that high rates cause inflation.

Source: Egypt Independent January 25, 2021 10:18 UTC