Turkey: No change of rates from CBRT – TDS

Analysts at TD Securities note that the CBRT cut the repo rate by 75bps today and was in line with the consensus, but less than our forecast of -150bps.

Key Quotes

“Going forward, the continued weakening of carry makes it hard to foresee a stronger, or even just stable, lira. TRY weakness seems a more likely outcome.”

“With high inflation, and weaker currency, we think that the CBRT will ultimately be forced to hike rates later this year.”