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:
- The CBRT delivered a 500bp key rate hike, in-line with the estimates of the majority of sell-side analysts.
- The central bank reiterated that monetary tightening will be gradually strengthened to the extent necessary until a significant improvement in the inflation outlook is achieved.
In its policy statement, the central bank said that monetary tightening will continue to be gradually strengthened to the extent necessary until a significant improvement in the inflation outlook is achieved. They cited both the stickiness of services inflation and rising oil prices as upside risks to inflation – and therefore see inflation close to the upper end of their forecast by year-end.
While President Erdogan recently said that he supports the central bank’s recent tightening steps, he also said that he would not accept low growth in the economy. Such views are conflicting, and it therefore remains to be seen whether or not the President’s stance will shift when growth slows – an issue which will gain more focus as we approach the local elections in March 2024. Credibility in the central bank – which is also a pre-requisite for a recovery in the lira – will therefore more firmly be restored when it is proven that Erdogan accepts tight policy in a low-growth environment.
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.