ING: Turkish Lira Carry Remains Attractive as CBRT Rate Cut Delayed
ING analyst Frantisek Taborsky expects the Central Bank of the Republic of Türkiye to hold its rate at 37.00%, citing geopolitical tensions, oil above $90, and tariff changes as factors limiting the scope to absorb higher energy costs, keeping the carry trade attractive.
ING's Frantisek Taborsky sees the Turkish lira carry trade remaining attractive as the Central Bank of the Republic of Türkiye (CBRT) is expected to keep its policy rate unchanged at 37.00%. The delay in easing is supported by external headwinds: geopolitical tensions, Brent crude oil above $90 per barrel, and tariff adjustments that constrain Turkey's ability to absorb higher energy import costs.
Taborsky notes that these factors reduce the scope for near-term rate cuts, thereby sustaining high carry returns for lira-denominated positions. The CBRT's cautious stance aligns with the need to anchor inflation expectations amid persistent global price pressures.
Source: FXStreet Forex News