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Analysis: Second COVID-19 wave tests Turkey s commitment to austerity, higher rates

4 Min Read ISTANBUL (Reuters) - A surge in COVID-19 infections and the prospect of another economic downturn could sorely test Turkish President Tayyip Erdogan’s reluctant acceptance of much higher interest rates and the need for greater austerity. FILE PHOTO: Pigeons fly over the Taksim Square during a nation-wide weekend curfew which was imposed to prevent the spread of the coronavirus disease (COVID-19), in Istanbul, Turkey December 5, 2020. REUTERS/Murad Sezer/File Photo Already, record COVID-19 infections and deaths have led to new curfews and shorter business hours, hitting Turkey’s large hospitality sector and many others struggling with double-digit inflation, and raising fears of a winter recession.

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