Central Bank of Turkey has made a rise in its interest rate on FX RRR as the US Fed made a hike this week, the annualised interest rate that CBT pays on Forex required reserves was increased to 0.49%.
This is consistent with the Governor Erdem Basci's guidance prior in this month that this rise could be done imminently consistent with Fed's change, so it was neutral for TRY.
At a broader level, government leaders remarked that there was no need for CBT to hike rates in response to the Fed, which is a familiar rhetoric from the government, noted Commerzbank.
