BREAKING: TRY muted after in-line CBRT rate decision

Central Bank of the Republic of Turkey (CBRT) announced its latest monetary policy decision today at 12:00 pm BST. Meeting was originally scheduled for Thursday, July 25 but CBRT announced in late-June that it will be rescheduled two days earlier. Median expectations among economists surveyed by Bloomberg was for CBRT to keep rates unchanged at today's meeting, with one-week repo expected to stay at 50.00%. In fact, none of over 20 economists in Bloomberg poll expected Turkish central bank to change level of rates.

There was no surprise when it comes to rates - one-week repo rate was left unchanged at 50.00% for the fourth month in a row. CBRT keeps rates at elevated levels as it attempts to drain excess TRY liquidity from the markets. CBRT noted that the main inflation trend has weakened and that it continues to monitor liquidity conditions closely. However, CBRT also said that there should be a temporary increase in monthly inflation in July and that inflationary pressures remain alive.

Source: xStation5