Free Trial
CNH

China Related Assets Continue To Rise

AUSSIE 3-YEAR TECHS

(H3) Falters on Firm CPI

NZD

Rangebound, ANZ Business Survey On Tap

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Goldman Sachs See 100bp CBRT Cuts at Remaining 2022 Meetings

TURKEY
  • In line with the unanimous consensus, Goldman Sachs expect the committee to cut its policy rate by 100bp to +11.00%. In both of its last two MPC meetings, the TCMB delivered a 100bp cut, bringing down its policy rate from +14.00% to +12.00%, and cited the importance of supportive financial conditions to preserve growth momentum amid slower activity in Q3.
  • President Erdogan has stated that he sees rates falling to single digits by next year. Based on Goldman’s view that the TCMB repo rate is largely disconnected from the monetary policy stance, they think the Bank is likely to continue cutting rates to further signal that policy will not be tightened. Hence, they forecast 100bp of cuts every meeting until year-end.
  • Despite the rate cuts, funding and macro prudential policies have remained restrictive so far. Nevertheless, Goldman think this is likely to be reversed closer to next year’s election and possibly via additional government spending, given the relative availability of fiscal space in Turkey. The primary question remains on the timing and extent of further changes to policy.

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.