All the hard work of the past year will be put to waste if, as we fear, Turkish President Recep Tayyip Erdogan pushes the recently appointed central bank governor Murat Uysa to cut rates at the next monetary policy meeting on 25 July. It’s not the actual rate cuts that should spook markets, though, several other emerging market countries have recently done the same, but rather it is the fact that it is Erdogan calling the shots on monetary policy – especially when his underlying motive is to claw back the lost political ground that twice cost him the Istanbul Mayoral elections…
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