By Haluk Burumcekci 18-02-2020

CBRT Credibility On The Line

(3 min read)
Resize text:


With the lira under pressure expectations are mixed on whether the Turkish central bank will opt for a sixth consecutive interest rate cut on Wednesday. We expect no change from the current 11.25%.




Inflation Continues to Edge Back Up

Turkey’s Central Bank (CBRT) is once again at a crossroads. After 1275bps in rate cuts since July last year the lira is under pressure and the focus on the true level of reserves has intensified. State banks have conducted regular foreign exchange sales in recent weeks, yet the lira has weakened 2% in the last month. Total open FX positions of the state banks reached US$4.8bn for the week ending February 7, its highest for a long time, with US$2.8bn additional positions opened, according to BRSA data.

TO READ THIS HIVE EXCLUSIVE
SUBSCRIBE TO MACRO HIVE PRIME

£39/month thereafter

For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers

START YOUR FREE TRIAL


MOST READ

ECB Preview: Biding Time Until June (2 min read)

By Caroline Grady | Apr 20, 2021
Stepped up PEPP purchases since the 11 March ECB meeting leave little need for any policy changes at this week’s governing council meeting...

Russia Sanctions: The Shock That Never Came (5 min read)

By Tatiana Orlova | Apr 16, 2021
The most important measure bars US entities from newly issued local sovereign debt, effective from 14 June. The ban includes debt issued by the CBR...

Weekly Vaccination Update: J&J Pause and EU Supply Schedule (1 min read)

By Sam van de Schootbrugge | Apr 14, 2021
In this prime tracker, we review the latest vaccine developments globally. This week, we’ve added some brief commentary...

PREMIUM CONTENT

ECB Preview: Biding Time Until June (2 min read)

By Caroline Grady | Apr 20, 2021
Summary Thursday’s ECB meeting is unlikely to…

Five Things You Did Not Know About China (2 min read)

By Bilal Hafeez | Apr 13, 2021
China is a global economic superpower, yet…

Want To Join Our Community Of Leading Investors And Researchers In Our Slack Chat Room?