MPC: Back from the brink, again…

TURKEY - In Brief 13 Sep 2018 by Murat Ucer

The Monetary Policy Committee raised the policy rate (weekly-repo) by a markedly higher than expected 625 bps to 24% at today’s meeting, from 17.75% earlier. As all funding was being provided at the O/N rate of 19.25%, the move corresponds to a 475 bps hike, de facto, assuming all funding will now go back to the weekly window (see chart). In terms of the statement’s content, there is not much of a change from the previous statement, except for a stronger emphasis on and acknowledgment of the worsening in inflation dynamics.The hike provides a relief of sorts as it is the first bold-ish move...

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