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.”
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