What’s priced in: BCRP and CBRT likely to hold this week

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What’s priced in: BCRP and CBRT likely to hold this week

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What’s priced in

BCRP and CBRT likely to hold this week

In Türkiye, the central bank meets on June 11. Our BofA economist, Hande Kucuc, 08 June 2026

forecasts the Central Bank of Türkiye (CBRT) to keep the one-week repo rate at 37.0% GEM FI Strategy

on June 11. Market perception appears to be that a deal on Iran could be reached Global

relatively soon, even as uncertainties around the conflict persist. Against this backdrop,

we think the CBRT is likely to hold rates, keep the effective funding at 40%, and Claudio Irigoyen Global Economist

reassess its stance once there is greater clarity on the equilibrium that emerges. BofAS

claudio.irigoyen@bofa.com

In Peru, the central bank met on June 11. The market is pricing 11bp of cumulative cuts David Hauner, CFA >>

over the next 12 months. Our economist, Alexander Müller, forecast the Central Bank of GlobalMLI (UK)EM FI/FX Strategist

Peru (BCRP) to keep the monetary policy rate unchanged at 4.25% on June 11. The david.hauner@bofa.com

BCRP pushes back against the idea of hiking rates. CPI inflation is running at 3.9% Claudio Piron

(almost twice the 2% target) but the BCRP says this is explained by supply shocks. EmergingMerrill LynchAsia(Singapore)FI/FX Strategist

Excluding energy, food, and transportation, "super-core" inflation is 1.5%. 12-month claudio.piron@bofa.com

inflation expectations are within the tolerance range (below 3%). The monetary policy Pedro Diaz

stance is slightly expansionary because of passive easing (increase of inflation CaribbeanBofAS Economist

expectations has pushed real rate below 2% neutral level). pdiaz2@bofa.com

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