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TURKEY: CBRT Rate Decision Coming Up (12:00BST/14:00 local time)

TURKEY
  • The CBRT is widely expected to keep its one-week repo rate unchanged at 50% and maintain a hawkish tilt to its guidance.
  • The Bank have and will likely continue to make further adjustments to its macroprudential toolkit in order to drain excess lira liquidity to supplement its tight stance on monetary policy.
  • USD/TRY has narrowed the gap to 34.00 ahead of the rate decision, up 0.25% on the session. As a reminder, Bloomberg reported yesterday that state-owned lenders sold over $500m to support the lira.
  • See our full preview, with a summary of sell-side analyst views, here.

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