Could Brazil be on the cusp of adopting a Turkish-style monetary policy, J.P. Morgan analysts ask.
Doomsayers have been prophesying Turkey’s economic boom to deflate into bust for many months now. The recent revival in positive investor sentiment worldwide ar has helped silence some voices. Others say it is a matter of time.
It’s been a pretty miserable 2011 for India and Tuesday’s collapse of the rupee to record lows beyond 52 per dollar will probably make things worse. Foreigners, facing a fast-falling currency, have pulled out $500 million from the stock market in just the last five trading sessions. That means net inflows this year are less than $300 million, raising concerns that India will have trouble financing its current account gap. The weaker currency also bodes ill for the country’s stubbornly high inflation.
Turkey’s inflation spike is here. And it is looking worse than expected.
Data today shows October inflation jumping 3.27 percent, well above forecast and the highest in nine years. Compare that to 1.8 percent at this time last year. Annual inflation is now running at 7.7 percent and makes the central bank’s end-year forecast of 8.3 percent look optimistic –most analysts reckon it will be closer to 10 percent. Inflation has in fact been rising steadily in recent months — a consequence of the runaway credit boom of the past year and a policy experiment which saw the central bank cutting interest rates in the face of an overheating economy and raising banks’ reserve ratios instead. Add in the pass-through from the lira’s big depreciation since August and a jump in inflation is hardly surprising. The central bank has of late expressed some concern about inflation and used this to justify its actions to prop up the lira.
from Jeremy Gaunt:
Twitter does have some very strange Trends. These are the things that appear on the right-hand side of the page that show what people are talking about. They more they talk, the more likely it is that something will get listed. More often than not they are about celebrities such as Justin Bieber.