Free Trial

Kavcioglu: Lira Weakness Not Just About Rate Cuts

TURKEY

CBRT's Kavcioglu Continues:

  • Kavcioglu says price pressures transitory
  • No plan to narrow c/a deficit via lira depreciation
  • Says lira weakening not just about Turkey rate cuts
  • Exchange rate to find its balance in free market
    Kavcioglu says FX pass-thru to inflation expected to be lower
  • Turkey cenbank is monitoring what others are doing
  • Turkey c/a surplus would mean price stability

Market Reaction:

  • Markets not showing much faith in comments from Kavcioglu here, reiterating the CBRT's stance on 'transitory' CPI pressures and lower FX passthrough
  • USD/TRY +1.08%, trading around Tuesday's highs. Close above 9.6249 opens up a move higher to 9.7121
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.