Walid Koudmani about Turkey's central bank decision: In either case, it appears that opinions are split on the decision
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Turkey's central bank will decide on rates on Thursday - FXMAG.COM asked Walid Koudmani, Chief Market Analyst at XTB, what can be expected, considering high inflation, an earthquake and the country's generally lackluster economic situation.
Naturally, the recent earthquake might have made the decision more difficult for the central bank
While some analysts believe that Turkey's central bank will lower interest rates in an attempt to stimulate economic recovery, it will be important to keep in mind that the country's inflation remains a significant problem to contend with amid an overall troubling macro situation. Naturally, the recent earthquake might have made the decision more difficult for the central bank as keeping a higher interest rate in times of economic crisis could add fuel to the fire, however it must be careful to not overextend itself and ultimately end up making other problems worse. In either case, it appears that opinions are split on the decision and there is a general uncertainty surrounding the decision which will only be clarified once we receive the actual news and which may have a significant impact on the already volatile Turkish Lira.
