Turkey keeps the neutral view – BAML

FXStreet (Edinburgh) - According to strategists at BAML, the perspective for Turkey sits on the neutral side so far.

Key Quotes

“We believe Turkey has missed an opportunity to ride on a strong cyclical tailwind of lower oil prices and address its macro vulnerabilities smoothly with the Federal Reserve’s rates normalization looming”.

“The main reason for this failure has been the increased political noise around Central Bank of Turkey’s monetary policy and “Turkey’s need for lower rates” political rhetoric, which undermined investor confidence”.

“The inflation and the current account outlooks have been overshadowed by political noise and pressure on central bank policy. Pre-election tail risks arrived sooner than usual and we expect some volatile months before the June elections”.