- Analytics
- News and Tools
- Market News
- Lira likely to suffer if the CBT disappoints – Commerzbank
Lira likely to suffer if the CBT disappoints – Commerzbank
Since the surprise interest rate hike on August 24, which gave the Lira a tidy 6% boost, the Turkish currency has been depreciating as if on a string. Economists at Commerzbank analyze TRY outlook ahead of the Turkish Central Bank (CBT) Interest Rate Decision.
CBT's restrictive monetary policy is only a necessary condition for a Lira recovery
If the CBT disappoints today, the Lira is likely to suffer. Because then all the analysts (including me!) will be speculating whether President Recep Tayyip Erdoğan had his fingers in the pie again. But if the CBT raises rates as expected or more, there is little chance of a sustained Lira recovery.
Unfair? Well, the CBT's restrictive monetary policy is – to use mathematicians' jargon – only a necessary condition for a Lira recovery. Turkey's policy mix would only be sufficient if the president's monetary turnaround were more credible to the market and to the public than it is at present.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
