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Turkey: Sharp policy shift solidified by 200bps rate cut

  • The CBRT cut rates by 200bps to 16% today versus Bloomberg consensus of 100bps cut, sending TRY down 2.5%

  • Shift towards cutting cycle solidified and CBRT credibility squandered; more hikes unlikely this year, but possible

  • Cut will undermine disinflation process and possibly erode BOP improvement; retain Sell on domestic debt

Turkey: Sharp policy shift solidified by 200bps rate cut
Patrick Curran
Tellimer Research
21 October 2021
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