Lira Fired Up as Central Bank Plays It Safe Before Elections

Turkish lira traders have plenty of risks to navigate over the next few months but the prospect of a central bank misstep before municipal elections in March may no longer be one of them.

By leaving interest rates unchanged on Wednesday and keeping its rhetoric over the dismal inflation outlook hawkish, the central bank is helping dispel speculation it could usher in a new wave of currency depreciation with monetary easing before the vote on March 31.