Macro Analysis /
Turkey

Turkey: The de-anchoring of inflation expectations in one chart

  • Lira depreciation has caused both survey and market-based inflation expectations to balloon

  • 12-month ahead inflation rose to 21.4% from 15.6% in November and 10yr breakeven rose to 21% from 16.8% in October

  • Sustaining unorthodox policy will cause further de-anchoring of expectations, necessitating future rate hikes

Turkey: The de-anchoring of inflation expectations in one chart
Patrick Curran
Tellimer Research
10 December 2021
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