Recent depreciation in Turkey’s lira is adding to inflation pressure: Fitch

Recent depreciation in the Turkish lira is adding to inflation pressure and likely driving the central bank’s decision over whether to raise interest rates this month or in coming months, a top Fitch Ratings official said on Tuesday.

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“In the near term we are likely to see stubbornly high inflation” due in part to “some near-term currency depreciation which is minimizing the impact of the previous appreciation on inflation,” said Douglas Winslow, director of European sovereign ratings at Fitch.

“The possibility of a near term (rate) hike is driven by some of these near term factors,” he said in an online presentation, adding that disinflationary pressures should emerge as expected later in the year.

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