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CBRT Re-enforces Hawkish Guidance; USD/TRY Moves Towards 200dma

TURKEY
  • Hawkish comment here as expected - should wait to see more indicators materialise before making any policy changes:
  • Accordingly, the MPC, taking into account the end-2021 forecast target, has decided to maintain decisively the tight monetary policy stance for an extended period until strong indicators point to a permanent fall in inflation and price stability.
  • As regards to the indicators pointing to a permanent fall in inflation and price stability, indicators for the underlying trend of inflation and pricing behavior, diffusion indices, demand and cost factors, and inflation expectations will be monitored closely for their compatibility with the targets in the forecast horizon.
  • Additional monetary tightening will be delivered if needed. However, in the absence of a major spike in CPI beyond 16%-17%, this may be the peak to rates in the near-term
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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