The Central Bank's Monetary Policy Committee meets today ( January 21 ) to review interest rates. The lira has been under pressure for some time with the deprecation accelerating after the corruption probe went public on December 17 but the government is against any move that could jeopardise growth ahead of the crucial local elections in March. TRY sank to a new record low on Monday while bonds extended losses as the yield on the benchmark paper rose to 10.16% from 10.04% at Friday's close. In fact, senior government officials, including key cabinet ministers have ruled out any rate hike. A Reuters poll of economists showed last week that only five out of 15 expected the Central Bank to make any move on the lending rate. The Treasury will sell 14-month zero coupon bond (new issuance) today as Turkey's five-year CDS hit 251 basis points, 18-month-high, on Monday.
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