Turkey: CBRT to keep all key rates unchanged - Rabobank

Analysts at Rabobank point out that the Turkish central bank will announce its decision on interest rates and they expect the central bank to maintain its commitment to tight monetary policy and to keep all key rates unchanged.

Key Quotes

“This is due to the prospect of inflation remaining well above the official 5% target for longer than initially expected, which was caused by renewed selling pressure on the lira. Therefore, to stabilise the lira and to prevent further losses, Governor Çetinkaya will have to explicitly signal that the CBRT will not hesitate to use all tools at its disposable. This may even include a rate hike if necessary.”