The central bank of Turkey is likely to hike its bank rate in order to balance the interest rate differential caused by recent rate hike by the U.S. Fed. The CBT increased remuneration on FX required reserves by 25bp last week. 

The Bank is expected to hike its one-week repo rate 50bp in the December MPC meeting to be held tomorrow, and thereby raising it to 9.5% by the end of Q1 16, foresees Barclays.

The central bank is unlikely to change in the O/N lending rate in the imminent future, but it may start cutting in Q2, 2016.