Turkey: CBRT to keep all its policy rates on hold – TDS

Analysts at TDS expect the CBRT to keep all its policy rates on hold at today’s MPC meeting.

Key Quotes

“The CBRT’s Weighted Average Cost of Funding (WACF) should also remain unchanged at around 12%. The Bank’s rhetoric is also unlikely to change much and will   be perceived as hawkish by the markets. Given TRY weakness along with core CPI inflation running at 11% Y/Y, we now expect that CBRT easing will not start until Q2 2018 instead of December 2017, as we had previously expected. We continue to forecast easing to be delivered in steps of 50bps at each of three successive meetings until the start of Q3.”