BREAKING: CBRT cuts rates by 50 bp, TRY weakens

Central Bank of Republic of Turkey announced its latest rate decision today at 11:00 am GMT. Median expectation among economists surveyed by Bloomberg was for a 100 basis point rate cut while median expectation in Reuters poll was for 50 basis point rate hike. CBRT decided to go with a 50 basis point rate cut, slashing the one-week repo rate from 9.00 to 8.50%. The Bank said that decision was allowed by improvement in inflation trends and that scale of rate cut is adequate to support recovery. Central bank said that it is assessing the economic impact and damage of recent earthquakes that hit Turkey and Syria.

EURTRY gained following a 50 bp rate cut from CBRT. Source: xStation5