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Turkey: TCMB cuts by 200bp
Fri, Jan 16 2009, 09:17 GMT
by Lars Christensen
Danske Bank A/S
The Turkish central bank (TCMB) yesterday night once again surprised the markets when it cut its key policy rate by 200 basis points to 13% from 15%. We had expected a rate cut of 100bp and the consensus expectation was for a 75bp cut. Despite the aggressive rate cut the lira has remained relatively stable. We expect more rate cuts going forward, but the likelihood of further lira weakness is a key challenge.
Published on
Fri, Jan 16 2009, 09:18 GMT
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