Political Risks Over? Not Yet
Concerns about Fed over-optimism admission and shortening the time from taper to rate-hike somehow did not spark a major risk-off dump in Turkish equities. Equities are traded just below the previous day’s close while major banks such as Halk, Is, Vakif, Yapi are in green territory. Meanwhile bonds are having a bad day...
McKinsey Believes in Turkey Failure
In other words, they do not believe in Dr. Erdem Basci, the governor of the Central Bank of Turkey, who said “believe in me and win” while estimating year-end USD/TRY rate at 1.92 in a TV interview (for those who wonder, the rate has hanged between 1.96 and 2.08 since the interview).