Royal Bank of Scotland economist: "Turkey is more flexible than Europe"

Turkey is more sound and flexible than Europe, amid renewed economic woes that could force some members of the eurozone to stop using the currency, Timothy Ash, emerging markets economist at the Royal Bank of Scotland, said yesterday. Ash pointed to a possible overheating economy, inflation, and the current deficit as risky areas for Turkey. This week's moves by the Central Bank are surprising, he added, saying he had expected it to hold interest rates stable and help the lira gain stability. Ash warned that the risk of investors withdrawing from Turkey would have a huge impact on foreign exchange rates and that the lira seems to be defenseless.