Fitch: Uncertainty about political influence over monetary policy in Turkey persists

In an interview with Reuters, Paul Gamble, Fitch's top 'emerging' Europe sovereign analyst, commented on the recent developments in Turkey: "They have dealt with some of the near-term stresses but we still have the uncertainty about political influence over monetary policy," Gamble said. Below are some other key quotes as reported by Reuters.

• And more broadly the fact monetary policy has been unable to get inflation to anywhere near the inflation target... That is a long-standing weakness.
• The rate hikes were in line with our scenario, a tandem move to also bring 4 different Turkish interest rates closer together had been useful as well.
• They still have the capacity to move the average funding rate significantly from the policy rate, so let's see how that evolves.