The Central Bank of the Republic of Turkey (CBRT) will announce on Wednesday, 19 February its policy rate. A rate cut is expected for economists at TD Securities who do not see the Turkish lira suffering.
“We forecast the CBRT to cut interest rates by 50bps on Wednesday, 19 February. This is in line with the consensus and our previously held view.”
“We think that the market is not positioned for easing. Therefore, rate cuts should have some negative sway on the lira, but we think the currency will remain essentially unchanged with strong activity from state-owned lenders to keep USD/TRY in check. As usual, the announcement will be more a matter of defining the quantum of the cut rather than the direction.”
“We expect no major USD/TRY move due to CBRT action, provided the MPC cuts rates no more than 50-75bps. A decision to hold would see the lira rally somewhat, while deeper cuts than 100bps could add more significant negative pressure than the underlying adverse dynamic is already producing.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.