Preview: Turkey Central Bank (CBRT) emergency meeting decision expected around 17:00ET
Summary of Potential Decision
- The majority of analysts are expecting Turkey to raise the upper end of its interest rate corridor between around 225-250bps. Other note the hike could be even more aggressive
- Thus Turkey is expected to increase the Overnight Lending Rate while keeping other key rates steady
- The 'odd' time of the rate decision today prompted speculation that the central bank could impose capital controls (**later dismessed by the gov Basci)
- Turkey did note that it would discuss moving to one single rate at meeting tonight but costs were important
Details:
- Majority of analysts are expecting Overnight Lending Rate to be raise by 225bps to 10.00%
- Expected to leave Benchmark Repurchase Rate unchanged at 4.50%
- Expected to leave Overnight Borrowing Rate unchanged at 3.50%