Goldman Sees Turkey Likely Tolerating Faster Lira Slide

Goldman Sachs economists expect Turkey to allow a more rapid depreciation of the lira, shifting policy emphasis toward stabilizing the external balance rather than disinflation. The implication is increased near-term FX pressure, which can spill into inflation expectations and broader EM risk sentiment. This is a policy/regime signal likely to move Turkey FX markets and potentially regional credit/FX spreads.