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Borsa Istanbul Partially Pares Wednesday Losses Ahead of CBRT Decision

TURKEY
  • The Borsa Istanbul index started the session over 1% in the green at the beginning of Thursday trading, having triggered circuit breakers twice yesterday and ending the session 7.1% lower.
  • The losses were triggered by comments from Erdogan, who said “Hamas is not a terrorist organization but a group of mujahideen fighting to protect their land and citizens”, risking a rift with his nation's western partners and signalling an abrupt end to the recent improvement in Israeli-Turkish relations.
  • The CBRT rate decision takes focus today (1200BST/1400 local time). Further tightening is expected, with the benchmark one-week repo rate expected to be raised by 500bps to 35% given that inflation is still running above 60%. See our full preview, with a summary of sell-side analyst views, here.

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