CBRT to keep all rates unchanged

Unicredit notes its views on CBRT meeting today as follows ...

• We expect the CBRT to keep all rates unchanged at today's MPC meeting, in line with market consensus. 
  
  
• We expect the one-week repo rate to be kept at 7.5%, the O/N lending rate at 10.75% and the O/N borrowing rate at 7.25%. 
  
  
• In addition, we do not expect any additional changes to the reserve option coefficients or to banks' required reserve ratios. 
  
  
• In our view, the elevated inflation environment and historically weak level of the TRY against the dollar argue against further rate cuts. 
  
  
• Cuts should resume only when inflation pressure and TRY volatility begin to abate meaningfully.