CBRT expected to cut rates further – BBH

Analysts at BBH see the Turkish central bank lowering further its overnight rate to 8.0% at its meeting later in the week.

Key Quotes

“Central Bank of Turkey meets Thursday and is expected to cut the overnight rate 25 bp to 8.0%. However, the benchmark rate is expected to remain steady at 7.5%”.

“CPI rose 7.3% y/y/. While this was the lowest since May, it is still above the 3-7% target range”.

“The weak lira poses some upside risks ahead, but further disinflation is likely needed before the bank cuts the benchmark rate”.