Last Minute… Central Bank announced its interest rate decision

The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (PPK) announced the interest rate decision that the markets were eagerly awaiting before the local elections on March 31.

Accordingly, the Central Bank Monetary Policy Committee increased the policy rate for March to 50 percent again.

The central bank; It increased interest rates by 650 basis points in June, 250 basis points in July, 750 basis points in August, 500 basis points each in September, October and November, and 250 basis points in December and January.

The Central Bank, which increased the interest rate in 8 consecutive meetings, left the interest rate constant in February.

WHAT WERE THE EXPECTATIONS?

AA Finans’ expectation survey: Economists expected the Central Bank of the Republic of Turkey (CBRT) to keep the policy rate constant.

Bloomberg HT survey: The median expectation of 24 institutions was to keep the policy rate constant at 45 percent.

REUTERS SURVEY: Almost all 22 economists agreed that the policy rate will be kept constant this month, ahead of the local elections to be held on March 31.

FOREX SURVEY: While 20 of 24 economists expressed their expectation that the interest rate would be left constant, 3 expected the interest rate to be increased to 250 basis points and 1 to 500 basis points.

Some foreign banks changed their interest rate expectations for Turkey after February inflation was much higher than expectations. Some economists wrote that the Central Bank (CBRT) may increase interest rates this month or next month.

CENTRAL BANK’S DECISION TEXT

The following statements were included in the decision text of the Monetary Policy Committee (MPC):

DETAILS COMING…