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Lira, Local Equities Little Changed Overall Following Rate Decision

TURKEY
  • USD/TRY reacted little to the rate decision, last dealing at unchanged levels on the day at the 31.00 handle. The decision itself and policy statement offered few surprises, with newly appointed Governor Karahan striking a familiar tone to his predecessor and stating that rates will need to be maintained at current levels until there is a significant improvement in the trend of monthly inflation.
  • A slight downtick in Turkish equities was noted following the rate decision, though moves are limited in scale overall. As such, the Borsa Istanbul index stands close to the all-time highs as major DM and EM equity indices remain supported by Nvidia’s strong earnings overnight. Ekonomi's banking "experts" continue to point to round-number levels of 9400 and 9500 as upside targets to watch.

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