The Turkish central bank meeting is set to be interesting as this is keenly awaited by the financial markets after the central bank signalled a rate hike last week, according to analysts at Danske Bank.
Key Quotes
“The key question is whether the central bank will satisfy market expectation? We believe the answer is no if the hike is less than 600bp.”
“We have been expecting a 300bp hike in September. Last week’s statement indicates that a larger hike could be delivered, which is TRY positive. Erdogan has no other ‘politically neutral’ tool to help the TRY than a significant hike, especially ahead of a possible rate hike by the Fed.”
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