The Turkish central bank announces its July monetary policy decision
The last time the central bank announced a rate cut was back in February 2015. The market was expecting a cut between 2% and 3% coming into the decision so this is a much larger-than-expected cut announced.
They are citing the possibility of advanced central banks easing policy for the bigger cut today and also says that the slowdown in inflation will continue. In other words, we can expect more rate cuts to follow and that wouldn't be the most surprising thing given who is in charge of policy now that Cetinkaya is relieved off his post.
USD/TRY just got a shot in the arm as it jumps from 5.7100 levels to a high of 5.7680 and is now settling between 5.7200 and 5.7300 levels.
