Published on Thursday, December 14, 2017 | Updated on Wednesday, January 3, 2018

Turkey: The CBRT tightens but lower than expected

Summary

The CBRT hiked the recent de-facto policy rate (late liquidity window, LLW) by only 50bps to 12.75%, disappointing the market call between 75-100bps and our call of 125bps in the average funding rate. The incoming inflation data will be the key input to know whether the CBRT opted today for a gradualist approach or just a wait-and-see attitude.

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Authors

Seda Guler Mert BBVA Research - Principal Economist
Álvaro Ortiz BBVA Research - Head of Analysis with Big Data
Asuman Kemiksiz

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Report (PDF)

Policy-Pulse-_Monetary-Policy_Dec2017

English - December 14, 2017

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