Turkish lira battered by another irresponsible rate cut

  • 100bps rate cut brings total cuts to 400bps since September and puts the real repo rate near -5%

  • TRY is down c4.5% at the time of writing, c13% in the past 10 days and c33% year-to-date

  • Continued depreciation is likely as policy missteps could trigger a BOP crisis; retain Sell on local debt and TRY

November 18th, 2021
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