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CBRT Rate Decision in 30 Minutes (1200BST/1400 local time)

TURKEY
  • Further tightening from the CBRT is likely, with the benchmark one-week repo rate expected to be raised by 250bps to 20.00%.
  • The trade-off for the bank remains tightening via the one-week repo rate or, as suggested by local press, tweaking the rules and regulations around FX tools and KKM accounts to manage financial conditions.
  • As such, markets may point to recent macroprudential adjustments as a substitute to the larger rate hike that the economic backdrop requires– an approach mimicked in the July rate decision.
  • See our full preview here: https://roar-assets-auto.rbl.ms/files/55426/MNICBRTPrevAug23.pdf

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