FAST FIVE: Turkey Keeps Rates On Hold Disappointing "Whisper" Expectations, Lira Jumps
Heading into today's Turkish central bank decision, there was much speculation if the CBRT would become the latest bank to jump onboard the global easing train, ignoring Turkey's runaway inflation and cutting rates – despite a consensus call for an unchanged print – to stimulate the contracting economy.
Moments ago the answer was unveiled, and for now, Ankara has decided to wait, even though Erdogan has made his displeasure with high rates very clear in recent months.
Specifically, the central bank's Monetary Policy Committee kept benchmark 1-week repo rate unchanged at 24%, as expected if above whisper numbers.
It also kept all three other major rates unchanged, including the Overnight Lending rate (25.50%), Overnight Borrowing rate (22.50%), and the Late Liquidity Window Rate at 27.00%.
Of course, the trade off to no rate hikes is further economic slowness, something Turkey hardly needs especially as the diplomatic feud over Ankara's decision to purchase a Russian missile system, risking Washington's ire and sanctions, still looms.