FXStreet (Delhi) – Research Team at TDS, suggests that in line with the consensus, they expect the CBRT to keep all its policy rates on hold i.e. the Repo Rate will remain at 7.5%, the O/N Lending Rate at 10.75%, and the O/N Borrowing Rate at 7.25%. Key Quotes “At the December MPC meeting, the CBRT said that monetary policy simplification could begin at the January meeting if the “decline in volatility prove persistent.” We think that what the CBRT means by “volatility” is in fact TRY weakness. And the lira has been weak of late. In fact, we suspect that monetary policy simplification will not start until the CBRT feels that it can lower the top of the interest rate corridor, the O/N Lending Rate, even if at the same time the Repo Rate and the O/N Borrowing Rate are raised. This would substantially ease any political flak that the CBRT might receive from just a Repo Rate hike.” For more information, read our latest forex news.