Economists at Barclays noted that the Turkish lira is still under that level, which could prompt the central bank to consider a rate hike. Key quotes (via Bloomberg) “Unless the dollar-lira pair exceeds 7.50, Turkey’s central bank will “keep its policy rates stable and manage the volatility by moving within the corridor and reducing TRY liquidity in the system.” Turkey’s policy rate to remain on hold at 8.25% for the rest of the year; “however, the risks are clearly to the upside following the recent volatility” in the lira. The main factors behind the lira’s volatility are local demand for hard currency and a “relatively muted reaction” from the central bank in terms of foreign-exchange sales. Even if the central bank shifts to using the Late Liquidity Window to fund all lending at 11.25%, Barclays says it “may not be sufficient enough to limit locals’ FX demand, ceteris paribus” Policy makers will likely raise the blended funding rates toward 11.25% while evaluating the effect of their measures over the next few days; the central bank is set to continue to “intervene verbally if needed” until the next meeting of the Monetary Policy Committee on Aug. 20.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Forex Today: Dollar holding onto NFP-related gains, Sino-American tensions, US stimulus in focus FX Street 2 years Economists at Barclays noted that the Turkish lira is still under that level, which could prompt the central bank to consider a rate hike. Key quotes (via Bloomberg) “Unless the dollar-lira pair exceeds 7.50, Turkey’s central bank will “keep its policy rates stable and manage the volatility by moving within the corridor and reducing TRY liquidity in the system.” Turkey’s policy rate to remain on hold at 8.25% for the rest of the year; “however, the risks are clearly to the upside following the recent volatility” in the lira. The main factors behind the lira’s volatility are local demand for… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.