Lira Analysts See Dovish Signals Tilting Turkish Policy

While Turkey’s central bank Governor Erdem Basci kept his benchmark interest rate unchanged for a fourth month, traders are betting it’s only a matter of time before he cuts.

Forward-rate agreements, contracts used to speculate on borrowing costs, signal rates will fall by a quarter of a percentage point in the next three months, according to data compiled by Bloomberg. The yield on two-year lira notes fell three basis points to 7.99 percent today, extending their biggest decline in a month yesterday to a one-year low.