CBRT: more near-term rate cuts, but hikes loom in 2020

The Turkish central bank delivered another larger-than-expected interest rate cut today and we now expect the one-week repo rate to reach a trough at 12.50% (previously 16.00%). But if we’re right in expecting inflation to start rising again and the lira to come under pressure, policymakers will probably have to shift back to rate hikes in the second half of 2020.

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