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Rate Hike Risks Rise As CPI Notches Up

TURKEY
  • GOLDMAN ECONOMISTS SEE `RISING RISKS OF A RATE HIKE' IN TURKEY
  • With the real yield now slightly eroded (now 2.03%) following today's upside CPI print, risks of another hike are escalating
  • The CBRT has said it will maintain its tightening stance until price pressures are permanently reduced, but a hike at the next meeting may be slightly premature as Agbal will no doubt be cognisant of being overly cautious and hampering the 2021 recovery
  • However, successive prints into the 15.50-16% zone in the next two months may force another tightening
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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