Turkey: CBRT lowers policy rate by 50 bps to 8.25%

Eren Sengezer FXStreet

The Central Bank of the Republic of Turkey (CBRT) announced on Thursday that it lowered its policy (one-week repo) by 50 basis points to 8.25%.

Market reaction

With the initial reaction, the USD/TRY pair pulled away from session highs and was last seen trading at 6,8028, where it was still up 0.23% on the day.

Additional takeaways

"Inflation outlook is considered to be in line with the year-end inflation projection."

"Decided to make a measured cut in the policy rate."

"Demand-driven disinflationary effects will be more prevalent in the second half of the year."

"Seeing a mild trend in core inflation indicators."

Favourable inflation outlook despite lira depreciation."

"Coronavirus normalization steps taken by several countries are being watched."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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