Turkey: CBRT lowers policy rate by 50 bps to 8.25%

The Central Bank of the Republic of Turkey (CBRT) announced on Thursday that it lowered its policy (one-week repo) by 50 basis points to 8.25%.

Market reaction

With the initial reaction, the USD/TRY pair pulled away from session highs and was last seen trading at 6,8028, where it was still up 0.23% on the day.

Additional takeaways

"Inflation outlook is considered to be in line with the year-end inflation projection."

"Decided to make a measured cut in the policy rate."

"Demand-driven disinflationary effects will be more prevalent in the second half of the year."

"Seeing a mild trend in core inflation indicators."

Favourable inflation outlook despite lira depreciation."

"Coronavirus normalization steps taken by several countries are being watched."