Turkey: Repo rate cut to 12% – TDS

Analysts at TD Securities note that in Turkey, the CBRT cut the one-week repo rate from 14.00% to 12.00%, once again easing more than the market expected.

Key Quotes

“They cited the stable lira and firmer domestic demand and inflation data which supported reduced risk premiums in the market as support for the move. This remains in line with our long-held view that the MPC will continue easing until real rates return to negative, likely early in 2020. The kneejerk reaction for TRY was mildly negative but quickly returned to flat.”