The Central Bank of Turkey (CBT) is expected to keep all policy rates unchanged at next week's MPC meeting. Inflation has accelerated to 7.9% y/y in April, while growth momentum remains weak (April PMI printed below 50, despite the rebound in IP in March).
Governor Basci reiterated in the inflation report presentation the necessity for a cautious monetary policy, given the elevated food prices and uncertainty in global markets.
"Unless the dis-inflationary trend resurfaces, it is unlikely to shift to a dovish stance", says Barclays.
