ING's View: CBRT Likely to Hold Rates Before Two Q4 Rate Cuts

According to an analysis from ING, the Central Bank of the Republic of Türkiye (CBRT) is likely to keep its current rates before making two rate cuts in the fourth quarter. Muhammet Mercan, from ING, notes that the CBRT has normalized liquidity through weekly repo auctions, bringing effective funding costs down to 37% of the policy rate. This suggests a prudent approach by the central bank aimed at stabilizing economic conditions before implementing more significant interest rate changes. The normalization of liquidity, although gradual, signals a period of market calm in Turkey that can be seen as a strategic preparation for future monetary operations. Such an approach reflects the growing importance of balancing short-term market stability with long-term economic sustainability, especially in today's globally uncertain economic environment. Source: FXStreet News