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13 Mar 2015
Further rate cuts are not ruled out in Turkey – TDS
FXStreet (Edinburgh) - In the view of Jacqui Douglas, Strategist at TD Securities, the CBRT could leave intact the monetary status quo in next week’s meeting, although further rate cuts are not totally off the table.
Key Quotes
“Recent comments from Turkish ministers are an overture to monetary policy independence”.
“The lira has suffered the setbacks of continued political interference until recently”.
“Therefore, we have decided to change our call for a 25bp cut to rates unchanged for the announcement on 17 March”.
“However, the truce between Erdogan and CBRT Governor Basci is unlikely to last, which leaves the risk of rate cuts still on the table and TRY weakness a collateral effect for later this year”.
Key Quotes
“Recent comments from Turkish ministers are an overture to monetary policy independence”.
“The lira has suffered the setbacks of continued political interference until recently”.
“Therefore, we have decided to change our call for a 25bp cut to rates unchanged for the announcement on 17 March”.
“However, the truce between Erdogan and CBRT Governor Basci is unlikely to last, which leaves the risk of rate cuts still on the table and TRY weakness a collateral effect for later this year”.