Turkey: Dovish signal from CBRT - TDS
|According to analysts at TD Securities, the CBRT removed the mention to “if needed, further monetary tightening will be delivered” which is a dovish signal and has been taken very negatively by the market as it reduces the CBRT commitment to hiking rates again if need be.
Key Quotes
“Given the upwards pressure on USDTRY in recent weeks, we think that the removal of this pledge shows a remarkable degree of complacency and/or naivety on behalf of the CBRT.”
“In line with the almost unanimous consensus, at today's MPC meeting, the CBRT kept its key policy rate, the repo rate, on hold at 24%.”
“We maintain our bearish view on the lira and see USDTRY at 7.90 by end-Q2 and higher at 8.90 by end-Q3. We see the CBRT as being forced to hike further in the coming months, with a terminal WACF rate at around 30%.”
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.