Today, Turkey Central Bank hike rate 425 bp to 12%. Will it be signal for FED taper tomorrow ?.
And this decision of Turkey Central Bank affect the world ?
In my opinion, if FED taper as the their plan, all effort of Turkey Central Bank is meaningless, capital will be withdrawn strongly from Emerging Market despite rate hike. If FED no taper, EMs have more time to prepare.
To safe, and no shock for the rest of the world, FED should wait and give more time for EMs to prepare.
And this decision of Turkey Central Bank affect the world ?
In my opinion, if FED taper as the their plan, all effort of Turkey Central Bank is meaningless, capital will be withdrawn strongly from Emerging Market despite rate hike. If FED no taper, EMs have more time to prepare.
To safe, and no shock for the rest of the world, FED should wait and give more time for EMs to prepare.