Turkey | The last bold cut… now time for fine tuning

Summary

The Central Bank of Turkey (CBRT) reduced the policy rate by 325 bps from 19.75% to 16.50%. The movement was higher than expected (Consensus 275 bps) but the reaction of financial markets to today´s decision was positive as the CBRT justified the movement with a faster than expected disinflation in the statement.

Key points

• Key points:
• The Central Bank cut the official interest rate strongly again.
• From now on, the policy adjustment would be more gradual and depending on the evolution of inflation.

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