Will the Central Bank slow down its interest rate increase? Striking prediction for Türkiye from the Dutch bank

Türkiye Central Bank of the Republic‘s interest rate decision is among the most important economic headlines of recent days. Following the Monetary Policy Committee (MPC) meeting, the new interest rate decision will direct the entire economic agenda.

Investors, this week the Central Bank of the Republic of Türkiye‘of (CBRT) Monetary Policy Committee While we were focusing on the interest rate decision to be announced at the (PPK) meeting, predictions regarding the interest rate decision started to come from international organizations.

“CENTRAL BANK MAY SLOW DOWN”

Economists of the Netherlands-based banking company ING predicted that the Central Bank would slow down with a 250 basis point interest rate increase. Economists’ analysis was as follows:

“The last inflation data announced in October showed that the main trend started to improve not only in core inflation but also in headline inflation.

Accordingly, we expect the bank to consider a slower increase of 250 basis points by reducing the policy rate to 37.5 percent in this month’s MPC. However, given the strong tightening moves since August, risks (for interest rates) are on the upside.”

ESTIMATED 40 PERCENT

In a developing country report published mid-week, ING economists predicted that the CBRT would stop the interest rate at 40 percent after two increases of 250 basis points. The report stated, “We expect the policy rate to be 40 percent with upside risks, with two increases of 250 basis points in November and December.”

The report also stated that the depreciation in the Turkish Lira is likely to continue in 2024.

WHEN WILL THE INTEREST RATE BE ANNOUNCED?

The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee will announce the interest rate decision on Thursday, November 23 at 14.00, under the chairmanship of the Central Bank Governor Hafize Gaye Erkan. At the MPC meeting held last month, the policy rate was increased by 500 basis points to 35 percent.