The inflation rate is rising globally due to Covid-19 endemic. Every central bank has responded by either raising interest rates or committing to raising them in the immediate future. Since September, Turkey has cut interest rates by four percentage points from 19% to 15%, The lira has now lost nearly 40% of its value since the beginning of the year. More of the story here.
Excerpt:
"It was the best of times, it was the worst of times", so begins the Charles Dickens classic, A Tale of Two Cities. In 'A Tale of Two Currencies' divergent trends have been seen in Zambia and Turkey over the second half of 2021 so far, and the latest PMI business survey data compiled by IHS Markit for these countries highlight the impacts currency movements can have on inflationary pressures and business performance.
Image credit - IHS Markit
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