Turkey’s ‘Orthodox’ Pivot Makes Lira a Favorite for HSBC
- EM research chief Murat Ulgen sees ‘huge room for improvement’
- ‘It’s one of our favorite markets’ in equities, credit and FX
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Turkey’s return to a more conventional approach to monetary policy is boosting investor confidence, setting the stage for capital inflows and underpinning HSBC Holdings Plc’s bullish stance on the nation’s assets.
Commitment to “rules-based orthodox” policies could lead to a faster and deeper improvement in the nation’s fundamentals in the second half of the year, Murat Ulgen, global head of emerging-markets research at the bank, said in an interview in Hong Kong. Inflation is expected to ease and the current-account deficit to narrow, and discussions around fiscal consolidation are “encouraging,” he said in an interview.