TRY trades little changed after CBRT decision

Central Bank of the Republic of Turkey (CBRT) decided to keep its main interest rate, the one-week repo rate, unchanged at 45.00% at a meeting today. This comes after CBRT delivered a cumulative 3650 basis points in rate hikes since late-Q2 last year. As market was expecting no move from CBRT, Turkish lira trades little changed following the decision with USDTRY trading at all-time highs in the 31.00 area.

USDTRY dropped in a knee-jerk move following CBRT decision and tested 50-hour moving average (orange circle). However, declines were erased, and the pair is now trading little changed compared to pre-announcement levels. Source: xStation5