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The CBRT has surprised the market by announcing at 11:08 GMT a 100bps cut of its benchmark repo rate. USD/TRY trades at 6.492 after rising with the news.

Key quotes

“The CBRT cut 100bps to 9.75% the repo rate. The decision comes two days ahead of the scheduled meeting.”

“The CBRT also announced a slew of expansionary and liquidity-support measures predicated on the severe impact that the coronavirus emergency is anticipated to have on the Turkish economy.”

“The lira will likely continue to trade in line with its prior trajectory but the reduced attractiveness of TRY vs other currencies may penalize the lira itself at a later stage.”