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TRY: USD/TRY Unfazed by Rate Decision, Tweaks to Macroprudential Measures Eyed

TRY
  • No reaction in USD/TRY to the rate decision given a ‘hold’ was unanimously expected. The forward guidance was also unchanged compared to last month, with the Bank reiterating that it stands ready to tighten policy should inflation dynamics warrant.
  • The statement mentions that liquidity conditions will be “closely monitored”, with further tweaks to the central bank’s macroprudential toolkit expected on this front as an alternative tightening measure. For USD/TRY, the pair stands 0.07% higher and overall within close proximity to its record highs posted earlier this month.

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