Turkish Rate Cuts Would Be ‘Disastrous Idea,’ SocGen’s Kalen Says

The video discusses the potential consequences of further interest rate cuts in Turkey, highlighting the risks of currency instability and the need for a balanced policy approach. It reflects on past crises and suggests that while a drastic policy reversal is unlikely, a more interventionist strategy may be adopted to maintain stability.

What has been the impact of President Erdogan's interest rate policies on Turkey's economy?

• Depletion of FX reserves

• Stabilized the currency without any issues

• Improved economic growth

• Increased foreign investment

What is the main concern if Turkey continues to lower interest rates?

• Currency stabilization

• Pressure on the currency

• Increased inflation

• Higher foreign reserves

What lesson did Turkey learn from the 2018 currency crisis?

• To reduce foreign investments

• To increase interest rates rapidly

• To avoid repeating the same mistakes

• To allow the currency to float freely

What approach is the Turkish government likely to take to stabilize the economy?

• Immediate interest rate hikes

• Allowing the currency to float

• Reversing all current policies

• A more interventionist strategy

What is the expected future policy regarding interest rates in Turkey?

• Immediate reduction to zero

• Gradual increase over the next year

• Maintaining current rates indefinitely

• Rapid increase to double digits