CBRT expected to hike rates on Tuesday – BBH

The Research team at BBH expects the Turkish central bank to hike its benchmark rate at its meeting on Tuesday.

Key Quotes

“Central Bank of Turkey meets Tuesday and is expected to hike the benchmark repo rate 50 bp to 8.50%”.

“However, the market is truly split. Of the 22 analysts polled by Bloomberg, 4 see no change, 3 see a 25 bp hike, 8 see a 50 bp hike, 2 see a 75 bp hike, and 5 see a 100 bp hike”.

“We think it will hike 50 bp, even though it SHOULD hike by 100 bp. The bank is also expected to hike the top of the rates corridor by 75 bp and the bottom by 25 bp”.