CBRT likely to cut its policy rate 50bps in its 24 February meeting: Standard Chartered

Quotes from Standard Chartered:

-We expect the central bank of the Republic of Turkey (CBRT) to cut its policy rate 50bps in its 24 February meeting. The central bank's governor has come under renewed pressure to accelerate the easing cycle, despite Turkish lira (TRY) volatility and recent historical currency lows.

-The increasing differences in views between the central bank and President Erdogan's team could lead the CBRT into a confrontational course (and stay hawkish) rather than bow to political suasion.

-However, this is not our base case. We think the CBRT will keep the upper band of the corridor at 11.25%, preserving room for tightening if needed. The lower band would likely have to be cut-we expect by 50bps to 7.00%- otherwise it would become irrelevant (it is now 7.50%, which would be higher than the policy rate)