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.
Executive Summary:
- CBRT firmly expected to keep rates unchanged at 14% for sixth consecutive meeting
- Rate hikes remain an unlikely tail risk, with Erdogan this month reiterating his firm opposition to tighter rates
- As such, focus remains on macroprudential measures
In the accompanying policy statement, the bank will likely continue to cite the Russia-Ukraine crisis, high commodity prices and supply constraints as a key driver of price pressures which, once passed, will allow for a wave of disinflation and a return to sustainable prices and financial stability. This reiteration should further bake in market expectations of unchanged policy for the CBRT across the coming months, and possibly into the end of the year, although a number of sell-side analysts see the potential for policy tightening by year-end, as the inflationary impulse persists.
Instead, the CBRT – in conjunction with banking regulators and the finance ministry - have become more active on macroprudential measures in an attempt to curb loan growth, incentivise Liraization and stem price pressures. These measures vary from tighter conditions for credit card use to adjusting collateral requirements for TRY-denominated bond portfolios.
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.