Economics

Erdogan Imperils Turkey’s Rating With Bonds Sinking Below Senegal’s

  • Yield spread with Senegal surges as lira slump weighs
  • President’s London remarks on rates spark bout of selling
UBS's Geoffrey Dennis Says Turkey Is in a Bit of a 'Perfect Storm'
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Turkey is paying more than Senegal on its debt, even though it has a higher credit rating and its economy is 60 times bigger. Why? Analysts say it’s Erdoganomics.

A selloff in Turkish bonds accelerated after President Recep Tayyip Erdogan faulted high interest rates for stubborn inflation in an interview with Bloomberg last week. He also said he would seek a bigger say in monetary-policy decisions after a June 24 election.