Turkey's monetary policy places an emphasis on the pursuit of growth and export competition rather than taming inflation.
, extending his rule into a third decade in power.
"We have a pretty pessimistic outlook on the Turkish Lira as a result of Erdogan retaining office after the election," Wells Fargo's Emerging Markets Economist and FX Strategist Brendan McKenna told CNBC's "Squawk Box Asia." Turkey's monetary policy places an emphasis on the pursuit of growth and export competition rather than taming inflation, and Erdogan endorses the unconventional view that raising interest rates increases inflation.
"With limited FX reserves and massively negative real interest rates the pressure on the lira is heavy," Ash continued."It's a very bleak economic and markets outlook for Turkey," McKenna added.
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