Turkey: All eyes and ears will be on the CBRT’s rate announcement today - TDS

Research Team at TDS, suggests that after the 15 July coup attempt in Turkey, all eyes and ears will be on the CBRT’s rate announcement today.

Key Quotes

“Markets were quick to react in both directions, during and after the Friday events. After selling off almost 5% on Friday, TRY recovered 1.3% yesterday, but weakened throughout the trading session after a very strong start on Monday. This behaviour means that the lira remains very much exposed to turns in risk sentiment, which should resort the CBRT to be cautious with its rate decision.

Many uncertainties remain and we think the CBRT will decide to cut the O/N lending rate only by 25bps to 8.50% instead of -50bps we would have otherwise expected. This should grant some support for TRY for now, although a deeper cut could quickly turn it into weakness.”