IronFX, Heads up for Central Bank of Turkey Interest Rate Decision later on

This article is originally referred from IronFX News.

Here are the 6 points to note before the market event.

1. On Wednesday, at 11:00 (GMT), the Central Bank of Turkey (CBT) will announce their interest rate decision.
2. A Reuters poll, suggests that the Bank’s decision will be of an interest rate hike of 50 basis points raising interest rates from 12.75% (top rate) to 13.25%.
3. Should the bank hike rates the Turkish Lira could strengthen against a number of currencies.
4. Be advised that the TRY has been weakening in the recent past as a number of financial indicators were quite unfavourable. However the still high inflation rate (10.23% in March) in conjunction with early elections in Turkey could provide the necessary conditions for the CBT to hike rates.
5. On the other hand, Turkish governmental intentions for growth could contradict a high interest rate hike.
6. We see the case for the CBT to raise hikes by 50 basis points currently.

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Original Source: IronFX News