Turkey | CBRT remains “tight” but closer to “ease”

Puntos clave
The Central Bank of Turkey (CBRT) maintained its policy rate unchanged (one-week repo, 24%) in line with expectations.

The CBRT has opted to gain some credibility by “reinforcing the disinflation process” and cope with the political and geopolitical uncertainties in the short term.

We maintain our view that the CBRT will start the gradual easing cycle towards the end of the year, but the expected disinflation path could bring it forward.