Turkey's central bank, CBRT is yet to announce its rate decision today. Most of the market participants expect the bank to rise its repurchase rate by 50 basis points to 8%.

The central bank governor Basci presentes the "Monetary and Exchange Rate Policy for 2016" on December 9th meeting, which states that the interest rate range will be narrowed, and would be made more symmetrical around 1 week repo rate.

"As our analyst Piotr Matys argues in his preview sent out earlier today, the CBRT is looking to simplify its unorthodox policy measures - without causing turmoil in financial markets or in Turkish politics. We believe that a 50bps hike in the 1 week repo rate should not make a significant difference to the borrowing costs of local banks", says Rabo Bank.  

CBRT might make a beginning at this, and thus also decide to raise the overnight borrowing rate by 25bps, while keeping the overnight lending rate unchanged.