All eyes on the CBRT later in the week – Danske Bank

The Turkish central bank (CBRT) will hold its monetary policy meeting later in the week and speculations are growing bigger on the ability of the CBRT to hike rates in order to strengthen the Lira, commented Senior Economist at Danske Bank Vlkadimir Miklashevsky.

Key Quotes

“In Turkey, the big question is whether the central bank (TCMB) will be able to calm markets with a ‘proper’ rate hike on Thursday”.

“We believe the answer is ’no’ if the hike is less than 600bp. Indeed, President Erdogan has no other ‘politically neutral’ tool to stabilise the TRY, especially ahead of a hike from the Fed later this autumn”.