ISTANBUL: Turkish bond and equity markets on Wednesday priced in an outside chance of a cut in key interest rates, the day before a monthly central bank rate-setting meeting where most analysts expect rates to be kept unchanged.
All but two economists in a Reuters poll predicted the Turkish central bank would keep its one-week repo rate unchanged at 10 percent. One economist forecast a 25 basis point cut and another predicted a 50 basis point cut.
Yet Turkey's 2-year benchmark bond yield slipped to 9.10 percent from a close at 9.19 percent on Tuesday, off the back of strong demand at Tuesday's debt auctions.
The Istanbul stock market closed up 1.59 percent at 76,454.56 points, outperforming the broader emerging markets index, which was up 0.27 percent.
The lira firmed to 2.1025 against the dollar by 1548 GMT, compared with 2.1130 late on Tuesday.
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