CBRT cuts rates again as it flags economic weakness, fuelling lira slide and USD/TRY upside - VT Markets

Enjoy 20% loss protection of up to USD 100* in the first 7 days The Central Bank of the Republic of Türkiye (CBRT) cut its one-week repo rate by 100bp to 36.0% from 37.0%, and matched that with 100bp reductions in the overnight corridor. This took the overnight lending rate to 39.0 and the overnight borrowing rate to 34.5. In its latest communication, the CBRT tightened its language on price dynamics, shifting from saying inflation indicators “suggest” a deceleration to stating they “confirm” a slowdown in the underlying trend, while also describing the real economy as showing weakness. The bank acknowledged upside inflation risks linked to energy, as Oil has moved back above USD 110 per barrel, yet it proceeded with easing.