🏛 Central Banks & Macro mixed · 0–6 months
A what‑if from the future

What if Turkey hikes again pre-emptively to defend the disinflation?

The CBRT surprises with an off-cycle hike to protect the lira and anchor expectations, a hawkish credibility signal that firms TRY and tightens local yields without breaking the regime.

7%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 7% · 90% range 0–17% · 36 analogues · measured class deflation 18% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 18% in 6 mo18%
Analyst prior · editorial share 40% of the class7%
Pooled · weight 86%7%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)7%
Published7%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a mixed shock. The CBRT surprises with an off-cycle hike to protect the lira and anchor expectations, a hawkish credibility signal that firms TRY and tightens local yields without breaking the regime. The trigger decomposes into signed root‑shocks — EM currencies ▲ · FX carry appetite ▲ · Fed policy path ▲ · Inflation expectations ▼ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Turkish lira TRY 📈 chartFX▲ +0.5%
hist -4.56–+1.82% · other way +0.76% (n=10)
2Indian rupee INR 📈 chartFX▲ +0.4%
hist -0.06–+0.34% · other way -0.2% (n=10)
3Chinese yuan CNY 📈 chartFX▲ +0.3%
hist -0.65–+0.07% · other way +0.24% (n=10)
4USD/JPY USDJPYon Hyperliquid 📈 chartFX▲ +0.2%
hist -0.35–+1.14% · other way +0.2% (n=11)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Short
For a common-man portfolio: Mixed for a typical portfolio — the move is more about rotation than direction. Favour the winners over the losers below rather than net exposure.
Also moves (not yet on Hyperliquid): Turkish lira +0.5% · Indian rupee +0.4% · Chinese yuan +0.3%

Historical precedent — what analogous events actually did

Across 36 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Turkey fires central-bank governor Agbal, sparking lira plunge 2021-03 Russian ruble 'Black Tuesday' 2014-12 Nikkei 225 worst single-day crash since 1987 2024-08 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Turkey's central bank hikes to 50% before local elections 2024-03 Egypt's third flotation and 600bp rate hike 2024-03 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Russia central-bank reserves frozen 2022-02 Turkish lira record low on rate cuts 2021-11 Turkish lira crash 2018-08 Argentina May 2018 peso run and 40% rate hike 2018-05 Sintra tantrum 2017-06 Pravin Gordhan fired in midnight cabinet reshuffle 2017-03 Mexican peso crash on Trump 2016 win 2016-11 August 24, 2015 ETF flash crash 2015-08 Swiss National Bank introduces negative interest rates 2014-12 SNB introduces negative interest rates 2014-12 Russia annexation crisis: Moscow market plunge 2014-03 India rupee hits record low in the taper tantrum 2013-08 Indonesia taper-tantrum current-account shock 2013-08 SNB imposes EUR/CHF 1.20 floor 2011-09 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 Turkey lets the lira float 2001-02 Russia GKO default and ruble moratorium 1998-08 Hong Kong defends the peg with sky-high HIBOR 1997-10 Philippines peso float 1997-07 Thai baht float 1997-07 Mexico $50bn international rescue package 1995-01 Mexican peso devaluation / Tequila Crisis 1994-12 The Great Bond Massacre 1994-02 Black Wednesday / ERM crisis 1992-09 Louvre Accord 1987-02 US dollar index peaks at its all-time high 1985-02
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
CNY CNYSHORT-0.6% · 5d -0.4%81%25 0.54⚠ differs
High-yield credit HYGSHORT-0.3% · 5d -0.1%66%24 0.24·
TRY TRYSHORT-4.4% · 5d -0.6%60%25 0.19⚠ differs
Bitcoin BTCSHORT-7.2% · 5d -4.8%62%20 0.19·
Gold XAUSHORT-1.0% · 5d -2.0%56%26 0.10·
USDJPY USDJPYLONG+1.0% · 5d +0.3%55%30 0.08✓ matches cascade
Volatility VIXLONG+0.5% · 5d +0.8%54%34 0.07·
US dollar DXYLONG+0.7% · 5d +0.6%53%36 0.05·
INR INRSHORT-0.2% · 5d -0.4%52%25 0.04⚠ differs
10y yield DGS10LONG+1bp · 5d +1bp49%36 0.00·

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.