Turkey: CBRT likely to hold before two Q4 rate cuts - ING
ING’s Muhammet Mercan notes the Central Bank of the Republic of Türkiye (CBRT) has normalised liquidity via weekly repo auctions, bringing effective funding costs down to the 37% policy rate.
ING analyst Muhammet Mercan reports that Turkey's Central Bank has normalized liquidity through weekly repo auctions, reducing effective funding costs to the 37% policy rate. The bank is expected to maintain rates at the September meeting, then implement two 100 basis point cuts to 35% in the fourth quarter. Inflation risks, stemming from potential Gulf conflict escalation, could present upside inflation risks, with the policy rate estimated at 35% by 2026.
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