Friends, there are talks that the CBRT might revise its inflation target in its latest meeting. Predictions suggest the target could be raised by 2-3 points from the current level. 🤔
But the real question is: Will this move open the door to interest rate cuts? Or will the direction of Borsa Istanbul change? Eyes are on last night's developments, folks!
What do you think? Should we expect a drop, or should we be more cautious? I'm looking forward to your comments!
Is the Central Bank of Turkey about to make a sudden decision? Is the inflation target changing, is it hinting at the possibility of an interest rate cut?
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Buddy, I don't think the CBRT raising its inflation target is a surprise at all, especially considering inflation has been hovering around the 70s lately—this revision makes perfect sense. As mentioned in last month's meeting, the Central Bank needs to align its targets with reality, or markets lose confidence.
As for interest rate cuts, well, I don’t see that happening anytime soon, especially since raising the inflation target doesn’t exactly pave the way for cuts. As for the BIST, it might be a bit volatile, especially with local investors playing it safe after these updates. From my experience, news like this can keep the market under pressure for a while.