Turkish economists predict that the country’s Central Bank’s discount rate will increase by 5 percentage points to 35 percent. Turkish television channel is reporting this TRT News.
According to the news of the TV channel, the survey in which 19 economists participated showed that they expected the interest rate increase to be in the range of 32.5-35 percent. They are of the opinion that this rate may increase to 40 percent by the end of the year. The Central Bank Monetary Policy Committee meeting will be held on October 26. Central Bank Governor Hafize Gaye Ercana will announce the interest rate decision at 14.00 local time.
In June, the Central Bank of Turkey announced that it would gradually tighten monetary policy through a cautious interest rate increase. Then for the first time in two years raised The refinancing rate was increased from 8.5% to 15%, although analysts predicted a less significant change. The Central Bank of Turkey raised the interest rate less radically from 25% to 30% at its September meeting.
As inflation continued to remain high in Turkey, the Central Bank had to take even more stringent measures. Experts interviewed by Bloomberg believe the regulator will continue to tighten monetary policy. Experts noted that the last interest rate increase, although it was 500 basis points, may not be enough to combat inflation approaching 70 percent. Analysts expect this rate to gradually increase to 35% by the end of the year.
Formerly Central Bank of Türkiye raised Maximization of the key rate from 2021.