Free Trial

CBRT Mins: Lowering Rates Through Reserve Options Mechanism Discussed at Last Meeting

TURKEY

CBRT Minutes:

  • IMPACT OF POLICY TIGHTENING ON LOANS, DEMAND TO INCREASE
  • DEMAND, COST FACTOR IMPACT ON INFLATION EXPECTED TO WANE
  • DISCUSSED WHETHER TO LOWER RATES WITHIN ROM MECHANISM
  • POLICY RATE IS SOLE INSTRUMENT TO SET MON. POLICY STANCE
  • Commitment to policy orthodoxy above is encouraging - keeping policy rate as the primary funding channel
  • CBRT adopts a framework with a medium term perspective, based on analyzing all factors affecting inflation and the interaction between these factors
  • This means Agbal will look through recent stickiness in inflation which is broadly priced into the CBRT's value function and not cut rates earlier than is 100% necessary
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.