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Central Bank of Turkey to remain on hold

There is high vulnerability of the central bank to pressures politically. The new policy mix in Turkey will result in easing the domestic monetary conditions overall. 

Hence, in a politically motivated scenario, i.e. premature easing, the monetary policy simplification could be delayed or interrupted.

"We expect the Central Bank of Turkey (CBT) to keep its policy rate unchanged in its November MPC meeting next Tuesday, but we still expect an acceleration of the "simplification" of monetary policy with the expected Fed hike in December", says Barclays in a research note.

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