Ahead of today's Turkish central bank rate hike - the direct result of Erdogan replacing his entire economic team with a new generation of "traditionalists" including hiring the former co-CEO of First Republic to run his central bank (“
I didn’t know her. We thought we should have a female chief at the central bank and took this step."), confusion reigned with FX strategists as clueless on what to expect from the CBRT as
Adam Jonas is on Tesla, with estimates ranging from Goldman’s call for a hike to 40%, to Standard Chartered’s 14%. In the end, the central bank's first move in ended up being weaker than pretty much anyone expected, with the new (female) head of the Turkish central bank delivering a significantly smaller interest-rate increase than anticipated, as the effectively insolvent country - with negative central bank net reserves...
... embarks on what it said would be a gradual transition from an era of ultra-cheap money. In kneejerk reaction, the lira dropped to a new record low, crashing as much a 3% to a new all time low, as the USDJPY hit a record high of 24.6224...
