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TURKEY: CBRT Rate Decision in Focus This Week

TURKEY
  • Trade Minister Omer Bolat said he requested an additional budget of TRY 5bn by year-end to increase support for exports, Dunya report.
  • The CBRT rate decision is the highlight of the week tomorrow (scheduled for Tuesday rather than Thursday this month owing to the Jackson Hole Symposium later in the week), with unanimous sell-side consensus expecting rates to be held at 50%.
  • The central bank is likely to continue to focus on alternative liquidity draining tools to manage financial conditions. Governor Karahan has repeatedly stated that further steps will be taken to drain excess lira liquidity in a bid to prevent deposit rates from falling – which could compromise the Bank’s tight stance on monetary policy. Among sell-side, the scope for rate cuts in the remainder of 2024 appears limited.

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