Since the notable weakness during the third quarter of 2016 when Turkey experienced a coup attempt which catalyzed an economic contraction, the economy has made significant strides. The latest quarterly gross domestic products for the three months ended in September highlighted the progress, with growth reaching 11.10% on an annualized basis. While partly attributable to the passing of the prior year’s contraction, it also reflects the impact of the cheaper Lira and elevated inflation. Household spending was a big contributor, rising by 11.70% during the period while being accompanied by higher fixed-asset investment, rising government expenditures, and more competitive exports. However, with inflation at 12.98%, there is a strong possibility that the Central Bank will opt to raise rates from their current 8.00% to help tackle rapid price growth. After trading mostly unchanged on Monday, USDTRY is edging below 3.8350, prolonging a near two-week pullback.