CBRT expects gradual move towards single-digit inflation in 2020, USD/TRY drops to 5.92

The Turkish Central Bank (CBRT) is considering single-digit inflation forecasts and the "outlook is for positive real interest rates," CBRT Governor Cetinkaya told NTV on the sidelines of the World Economic Forum in Davos on Wednesday.

"We will see a gradual move towards single-digit inflation in 2020," Cetinkaya added. "We have entered a period of fine-tuning in monetary policy in 2020. Next steps in monetary policy will be data-dependent."

Market implications

These comments seem to be helping the TRY gather strength. As of writing, the USD/TRY pair, which touched a daily high of 5.9445, was trading at 5.9230, losing 0.25% on a daily basis.