Turkey central bank cuts repo rate
The Turkish central bank delivered a 325bp cut to its main policy rate on Thursday. Although the move is larger than the 250bp consensus that had emerged ahead of the meeting, many analysts had been fearful that the move would be even more drastic — and the market appears to be rallying in relief.
“Speaking to Turkish banks last week, most people were predicting a cut of between 200bp and 300bp,” said an emerging markets portfolio manager. “Though 325bp is a bit above that, it’s nothing too dramatic.”The Turkish lira has rallied on the news, strengthening from TL5.76 to the dollar ...
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