Bank views ahead of today's CBRT meeting.....>

TURKEY: Bank views ahead of today's CBRT meeting.

Nordea - We remain sceptical that the CBRT will deliver a hike of the official

policy rate. Instead we believe that the Bank will either hike the o/n rate or

the late liquidity window, a move which we do not believe will be enough to

structurally support the TRY.

Barclays - We expect the CBT to hike all policy rates by 300bp, maintaining the

symmetry of the corridor around 1-week repo rate at which the CBT will likely

provide all funding.

TD Securities - We think the CBRT will want to do more than the consensus, and

will hike the one-week repo rate to 22.0%. On the face of it this would be a

425bps hike. However, the Weighted Average Cost of Funding would be lifted to

22% from 19.25% now, making a less aggressive increase of 275bps."

RBC - we will be watching the o/n lending rate (now at 19.25%). We estimate THE

o/n lending rate needs to be raised by 430bp for CBRT's weighted average cost of

funding to have the same real rate differential as it had after the May/June

hikes. Alternatively, the one-week repo rate would have to be raised by 580bp.