The Central Bank of the Republic of Turkey (CBRT) today took markets by surprise, cutting its policy interest rate from 10% to 9.5%, but saying its monetary policy stance "will continue to be tight… until there is a significant improvement in the inflation outlook".
The central bank's claim that the rate cut leaves policy "tight" fits with the interpretation of a sharp rate hike in January this year having been a "front-loaded" move, as CBRT deputy governor Turalay Kenç described it in an
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