Turkey to keep its rates unchanged
- FX Market
- 6 months ago
Standard Chartered analysts have the opinion that the Central Bank of the Republic of Turkey will not change its rates and will announce the same on Thursday at its December meeting and rate cuts may be the strategy moving ahead.
Analysts quoted, “We expect the Central Bank of the Republic of Turkey (CBRT) to keep interest rates unchanged at the 13 December MPC meeting”.
“We see three reasons that support this decision.”
“First, inflation is likely to continue softening. The November CPI print could be a sign that inflation has peaked, given the m/m deceleration to 1.44%.”
“Second, the current account balance, which turned into a surplus in August and September, is set to continue posting surpluses in October and November, according to comments from the finance minister.”
“A rebalancing on the external front, if sustained, would mean Turkey would be less exposed to portfolio flows in 2019 versus 2018.”
“Third, Turkish lira (TRY) performance, with some of the currency crisis losses recouped, is supported by a more benign geopolitical backdrop and restored confidence in policy following measures taken by both the government and the CBRT during the crisis.”
Source: Smart Trend Team