June MPC: A Minor Surprise

TURKEY - Report 24 Jun 2014 by Murat Ucer
The Monetary Policy Committee cut its key interest rate, the weekly repo rate, by a higher than expected 75 bps (versus consensus of a 50 bps cut) down to 8.75%, but left the O/N corridor intact at 8%-12% (see chart). While the cut is more aggressive (25 bps more) than we had envisaged, the fact that the corridor did not move is in line with our expectation. We interpret this move as a balancing act between political pressures and economic realities. On the one hand, the Bank continues to give what the political environment is calling for, i.e. lower rates, but on the other hand, it keeps t...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.