A senior analyst at Japan's Credit Rating Agency (JCR) said Thursday that steps taken by Türkiye's economic authorities were having a constructive effect on restoring market confidence, pushing back against the view that Japan's monetary tightening was the root cause of recent emerging-market volatility.
Yoshihiko Tamura, JCR's Türkiye specialist, told the Anadolu Agency that US inflation pressures, expectations of rising global interest rates, and elevated oil prices were the principal drivers of the broader emerging-market selloff. Country-specific domestic factors compounded the stress in individual markets, he said.
In Türkiye's case, Tamura traced the lira's slide from early May to a sharp April inflation spike, driven by higher transport costs tied to oil prices, rising food costs, and seasonal price pressures. A simultaneous drop in the currency, equities, and bonds followed as global conditions deteriorated and domestic tensions, including a widening current account deficit, added pressure.
Despite the turbulence, Tamura said structural reforms undertaken in recent years made a full-blown economic crisis unlikely. He noted continuing progress on IMF-guided reforms, including social security restructuring, but cautioned that markets can overshoot and that prolonged instability could weigh on the economy. Maintaining a firm reform course, he said, was essential to rebuilding confidence.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.