Free Trial
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.
Turkey Central Bank
Turkey Central Bank
Executive Summary
- CBRT is expected to leave its one-week repo unchanged at 14.00% - in line with the broad market consensus.
- Authorities continue to favour the use of non-standard policy tools over rate hikes to keep FX volatility low, encourage de-dollarisation and support the rebuilding of reserves through tweaks to the FX-linked deposit scheme.
- Policy is likely to become more challenging towards the start of 2H22 as inflation headwinds continue to amplify socio-political pressures on the ground ahead of 2023 elections.
Full Preview Here:
Analysts remain divided over the possibility and potential timing of a policy U-turn in 2022, with Erdogan staying resolute in his promises to favour non-standard fiscal/monetary measures to deliver lira stability over hiking policy rates. For now, the expectation is for policy to remain on hold to accumulate reserves via the FX-linked deposit scheme until the government is forced into some form of policy action by rising inflation and a weaker lira going into the start of 2H22. This informs the base case for a relatively uneventful meeting this week, with a more challenging policy in the pipeline.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok