Market Outlook: Central Bank's Decision to Maintain Interest Rate Bolsters Turkish Lira

Forex - The Turkish lira slightly reduced its losses after the Central Bank of Turkey kept interest rates unchanged at 50%, as analysts had expected. The Central Bank reiterated that it would maintain a tight monetary policy until a significant and sustained decline in the core trend of monthly inflation is observed. Capital Economics economist Nicholas Farr stated, “There is no clear indication that rate cuts are imminent. Inflation is expected to slow down in the coming months and rate cuts are unlikely at least until the end of the first quarter of 2025.” USD/TRY fell from 34.5504 to 34.4791 ahead of the decision.