The Central Bank of the Republic of Turkey announced a monetary policy decision at 11:00 am GMT. CBRT decided to cut the 1-week repo rate again, this time by 100 basis points to 14.00%. While lowering rates amid 20+% inflation remains controversial, the fact that CBRT this time only "matched" expectations instead of delivering even bigger rate cuts can be seen as a positive. Nevertheless, investors were not enthusiastic about the move and rushed to sell lira. USDTRY leaped to above 15.50 following the decision while EURTRY moved above 17.50. Note that TRY has been sliding since the Asian session when it was reported that Erdogan replaced another two deputy finance ministers for failing to embrace his unorthodox view on the economy.
USDTRY leaped higher following the decision announcement. However, most of the move has been quickly erased following a report that CBRT has already used room for rate cuts.
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Source: xStation5
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