CBRT announces cut to one-week repo rate to 16.50% from 19.75%
The Turkish central bank announces its September monetary policy decision
- Prior 19.75%
The expectation was for a rate cut between 250-300 bps. That's slight more than expected but the decision here has been well telegraphed to markets and we're seeing a "buy the rumour, sell the fact" play in USD/TRY as the pair falls below 5.70:
The Turkish central bank surprises once again with another large cut and continues to reiterate that current monetary policy is in-line with disinflation path, adding that the inflation outlook looks set to continue to improve moving forward.
Overall market sentiment in Turkey remains fragile but with inflation starting to show signs trending downwards this year, the move helps to play into the hands of being supportive for the Turkish economy - and being a lira positive in a way.