Damage control: Turkey’s economy

view on espresso.economist.com -- fan qiang -- Dec 13th 2018

Damage control: Turkey’s economy

  • Damage control 〔军〕损坏管理制;紧急管制;灾害防控;修补损伤

The Turkish lira is at its strongest against the dollar since August, when American sanctions helped sink the currency to record lows.

  • lira 里拉(马耳他、叙利亚、土耳其和意大利货币单位,在意大利于 2002 年为欧元所取代)

Inflation, which surged past 25% in annual terms in October, the worst since 2003, eased to under 22% in November.

  • Inflation 通货膨涨
  • ease 缓解;减轻;放松;降低

Given this, and possible pressure from President Recep Tayyip Erdogan, who would like to rekindle growth ahead of local elections in March, the central bank might have been tempted to slash lending rates today.

  • rekindle 使重新活跃;使复苏
  • lending rate 贷款利率;放款利率
  • slash 大幅度削减;大大降低

Instead, it held firm, keeping its one-week repo rate at 24%.

  • repo rate 附买回利率;回购利率;再回购利率

Inflation is hardly under control.

Despite the recent recovery, the lira is still down by about 30% in dollar terms since the start of the year.

A rate cut could have triggered another painful run on the currency.

The economy, led by the construction sector, had guzzled cheap credit for years.

  • construction sector 建筑业;结构规划优势
  • guzzle 大吃大喝;暴食;豪饮

Turkey’s hangover must endure, but at least the central bank has shown some reassuring independence of late.