Amid the leadership overhaul and 12% rise in Lira last week, Turkey’s central bank (CBRT) monetary policy decision is eagerly awaited, with economists expecting the central bank to hike the key rate to 15% from the current 10.25% this Thursday, the latest Reuters poll showed.
Key findings
“In the first meeting under the new Governor Naci Agbal on Thursday, the central bank is expected to hike its policy rate to 15%, according to the median forecast of 21 economists in the Reuters poll.”
“While all economists forecast a rate hike, the estimates ranged between hikes to 12.25% and 16%.”
“A rise to 15% in the policy rate would in effect be a limited tightening since the weighted average cost of funding has risen to 14.64% due to the backdoor measures.”
“An outright hike would signal the bank is serious about bringing inflation down to single figures.”
USD/TRY back on the bids
USD/TRY has regained the upbeat momentum ahead of the CBRT decision, now adding 0.32% on the day to trade at 7.7310.
- USD/TRY prints mild losses above 7.7000 with eyes on CBRT rate decision
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