The Turkish rate hike calms markets for now
The FOMC meeting in focus
The Central European region has appreciated certain calm down on emerging markets. After the US market close the Turkish central bank delivered what investors hoped for – the interest rate hike by no less than 425 bps to 12%. Furthermore the bank pledged to keep the policy restrictive till the inflation outlook improves. Thanks to the relief the Hungarian forint gained around 1.4%, the zloty around 0.8% and the Czech currency remained more or less unchanged. Regional bond markets felt relief too.
ead the full report: FX Daily
KBC