CBRT seen lowering its O/N Lending Rate today – TDS
|Annette Beacher, Macro Strategist at TD Securities, expects the Turkish central bank to cut its O/N Lending Rate by 25 bp at today’s meeting.
Key Quotes
“CBRT will announce its rate decision today. We see no reason why their easing programme should be interrupted”.
“However, while we continue to expect the CBRT to ease policy one way or another, by no means do we think this course of action is justified by the macroeconomic backdrop or financial risks that loom at the horizon”.
“TRY has so far not overreacted to Fitch’s change in outlook last Friday, which suggests that we should expect the MPC to cut the O/N Lending Rate by 25bps to 8.50%”.
“This process is likely to continue until symmetry in the corridor is restored at ±25bps around the repo (so when the lending rate is 100bps lower, with repo at 7.50%)”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.