Financial markets will welcome the re-election of Prime Minister Recep Tayyip Erdogan as positive for political stability, Ozgur Altug , chief economist at BGC Partners, said today in a telephone interview.
Turkish exports as a proportion of economic output are less than half the ratio of investment grade countries, BGC Partners said.
Turkey’s central bank kept its interest-rate corridor unchanged as it seeks to support the lira and slow inflation.
Turkey’s lira is about 5 percent or 10 percent undervalued against a basket comprising the dollar and the euro, central bank Governor Erdem Basci said.
Turkey’s budget surplus widened 34 percent to 1.4 billion liras ($780 million) in April as a dividend from the central bank more than offset growth in government spending.
Turkish banking shares surged, snapping a three-day losing streak, after the central bank cut reserve requirements on lira liabilities, freeing up capital for increased lending.
"I am proud of this transaction as a Turkish citizen."
- Ozgur Altug on Nov 05, 2014