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MUFG pushes expectation for start of Turkey easing cycle to Q3

05/10/2021 07:36
MUFG pushes expectation for start of Turkey easing cycle to Q3

- MUFG has pushed back its expectation for the start of monetary easing in Turkey to the third quarter from the second quarter, given the central bank's more patient tone, it said on Monday.

The risk of an interest rate cut in June was negligible, MUFG said, though it maintained its view that the central bank would be more dovish after the appointment of Sahap Kavcioglu as governor in mid-March.

Turkey's central bank held its key interest rate steady at 19% as expected last week and repeated a pledge to keep it above inflation, which the bank expects to cool after having risen beyond 17% as the lira depreciated. nL8N2MT5NG


(Reporting by Tom Arnold, editing by Karin Strohecker)

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