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Wednesday, 22 February 2012

Turkey: easing but for how long? | beyondbrics - FT.com

It may not be much of a coincidence that a big emerging market – Turkey- relaxed its monetary policy almost as soon as the eurozone agreed the latest Greek bailout.

Turkey’s step, taken at the monthly meeting of the country’s monetary policy committee, reduces the highest interest rate the central bank can charge commercial banks by 100 basis points.

The link? These days what most affects investors’ day-to-day perspective on the Turkish economy, like those of many other countries, is probably not so much the country’s own economic fundamentals as the global appetite for risk, determined, as much as anything else, by the eurozone’s prospects.