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CBRT Follows Expectations, USD/TRY Dips Lower towards 6.90

TURKEY
  • CBRT: Overall comes out exactly as expected - hold with reiteration of potential tightening if needed
  • Lip service paid to lower credit demand impulse, but slight concern about commodity prices and supply constraints on the medium-term outlook
  • But these factors expected to ease into year end, drawing us closer to the 10.50% zone
  • Rather muted market reaction, USD/TRY heavy into the announcement before notching higher at 50bp expectations priced out - but now looking to resume the downtrend.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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