In a report to clients, Goldman Sachs’ Economists Kevin Daly and Clemens Grafe believed that the Turkish economy may see a shallower recession while calling for higher interest rates. Key quotes “As the ability of Turkey’s central bank to intervene in the market declines in tandem with its foreign currency reserves, we think that monetary policy will need to tighten to slow the pace of imports, encourage inflows and discourage dollarization.” “Gross domestic product will shrink 3.5% in 2020, a revision of its earlier forecast for a 5% decline. As a result of a “more limited contraction,” the economists expect the current-account deficit at 4% of GDP in 2020. “Turkey’s policy rate could end the year at 12% and reach 14% by the end of the first half in 2021.” “The main risk to this view is that the authorities tighten policy too little, too late as they prefer to remain supportive of growth, a policy course which would add to the risks around the lira.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD shrinking bets for a move to 1.1750 – UOB FX Street 1 year In a report to clients, Goldman Sachs’ Economists Kevin Daly and Clemens Grafe believed that the Turkish economy may see a shallower recession while calling for higher interest rates. Key quotes “As the ability of Turkey’s central bank to intervene in the market declines in tandem with its foreign currency reserves, we think that monetary policy will need to tighten to slow the pace of imports, encourage inflows and discourage dollarization.” “Gross domestic product will shrink 3.5% in 2020, a revision of its earlier forecast for a 5% decline. As a result of a “more limited contraction,” the economists expect the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
