MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Lira, Turkish Equities Rally on Sizeable Rate Hike

TURKEY
  • The magnitude of today's hike was well outside of expectations. Sell-side consensus was firmly for a 250bp rate increase. Even among those who noted outside risk of a larger hike, an increase of such size was not considered. They last hiked by 750bps in a market-steadying measure after the Presidential elections in May.
  • USDTRY dropped almost 2% on the decision. The pair broke below 27.00 and is now at levels not seen in over a month. The Borsa Istanbul index rallied on the decision while yields on Turkey’s USD bonds have fallen 12-18bps across the curve.
  • The decision appears to have been based on the bank's confidence that recent adjustments to macroprudential measures are sufficient to deal with recent lira liquidity issues, which had hampered transmission. As such, these regulatory tweaks helped facilitate the higher-than-expected rate hike today: “recent regulations targeting a rising share of Turkish lira deposits will strengthen the monetary transmission mechanism.”
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.