Turkey: Policy rates to be kept on hold - TDS

At today’s MPC meeting, analysts at TDS expect CBRT to keep all the policy rates to be kept on hold.

Key Quotes

“In particular, we expect the Late Liquidity Window Lending rate (LLW Rate) to be held at 12.75%. The consensus is for all rates to remain on hold, with just two out of 22 respondents to the Bloomberg survey expecting a 25bps hike in the LLW Rate. We expect the press statement to be largely a copy of the January statement. In particular the MPC will probably continue to use the same, on the face of it hawkish, language, saying that the MPC will maintain a tight monetary policy for as long as necessary, with further tightening delivered if needed. However, we think that the CBRT's monetary policy is really not that tight, with inflation way too high, certainly in relation to the official 5% target, and even in relation to an apparent, de-facto target of 7-8%.”