The decision by the Turkish central bank to accelerate the pace of its easing cycle today with a 150bp cut to its one-week repo rate, to 38.00%, was accompanied by relatively hawkish communications which suggests to us that the pace of the easing cycle will remain of the order of 100-150bp per meeting (hinging on the latest data releases). We maintain our forecast for the policy rate to be cut to 27.00% by end-2026, which is a more hawkish view than the consensus.
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