USD/TRY moved around 0.3% higher shortly after the announcement by the Central Bank of the Republic of Turkey (CBRT) of cutting the repo rate by 50bps, analysts at TD Securities brief.
Key quotes
“The CBRT’s MPC today cut interest rates by 50bps. The cut was anticipated by us and the consensus, though the magnitude was difficult to forecast.”
“The press statement that accompanied the announcement is relatively similar to the January one. This indicates that further easing will probably continue into the next meeting(s).”
“We think that bringing the repo rate down to single digits is a goal that the MPC will continue to work on.
“With the weakening carry trade it is hard to foresee a stronger, or even just stable, TRY.”
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