The Central Bank of the Republic of Turkey (CBRT) announced on Thursday that it lowered its policy (one-week repo) rate by 100 basis points to 15% as expected.

Market reaction

The USD/TRY pair, which reached an all-time high of 10.9667 earlier in the day, fell to 10.4500 area minutes before the rate decision but rose sharply following the announcements. As of writing, the pair was up 0.8% on the dy at 10.7000.

Key takeaways from policy statement as summarized by Reuters

“Decided to cut rates after evaluating areas that monetary policy can impact.”

“Positive impact of policy on commercial loans being seen.”

“Evaluated temporary impacts on inflation will have influence in the first half of 2022.”

“Might ease policy again in December.”

“Will continue to use all policy tools until 5% inflation target achieved.”

“Stability in the general price level will foster macroeconomic stability and financial stability through the fall in country risk premium.”

“Stability in general price level would create a viable foundation for investment, production and employment to continue growing in a healthy and sustainable way.”

“Improvement in annualized current account is expected to continue in the rest of the year due to the strong upward trend in exports.”

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here