HSBC & ING preview today's Turkish Central Bankdecision due around 12:00 BST

ING: Overall, we expect all rates to remain flat at today’s MPC and keep monetary conditions tight with the effective rate close to current levels at 12% and to reiterate its commitment to a tight stance until there is a marked improvement in the inflation outlook. In other words, still elevated headline and inflation expectations, ongoing geopolitical issues and a risky scenario of policy tightening by major central banks via rate hikes or tapering should keep the central bank of Turkey cautious on monetary policy.

HSBC: We expect all key interest rates to be unchanged. We maintain our view that the CBRT could look to ease lira liquidity conditions as headline inflation moderates over the next 12 months. However, given the broad-based deterioration in the inflation outlook in August, easier liquidity in the near term appears unlikely.

N.B. All of those surveyed expect the Turkish Central Bank to leave its 3 major interest rates unchanged today.

14 Sep 2017 - 11:05- Fixed IncomeEconomic Commentary- Source: HSBC/ING

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