On spurious correlations, horses and carts

TURKEY - Report 19 Jan 2023 by Murat Ucer

As expected, the MPC kept the policy rate unchanged at 9% today, and began attributing the beginnings of a largely base effect-driven decline in inflation to its so-called “liraization” policies. The statement (link here) contained quite a few modifications compared to the last one, which we briefly highlight below.

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