Turkey: Further Tightening from the CBRT

Summary

In line with our expectations, the Central Bank increased late liquidity window (LLW) rate to 12.25% from 11.75% and kept the rest of the interest rates unchanged. Market consensus was the CBRT to hold the entire set of rates constant. Our rate increase expectation was based on our inflation forecast where we expect to breach 12% in April and stay close to 12% in May.

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