Goldman Sachs Suggests "Fully Orthodox" Policy Maker Might Increase Turkey's Rates to 40%

Goldman Sachs said on Friday the appointments of Mehmet Simsek as Turkish finance minister and Hafize Gaye Erkan as central bank governor suggested a widespread understanding in the new administration that monetary and fiscal adjustments were needed.

The Wall Street bank, in an overhaul to a number of its forecasts for Turkey, said stabilising the economy “will require a large, and we think discontinuous, adjustment to the exchange rate.”

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