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Domestic markets are waiting for the CBRT’s interest rate decision

Markets focused on the interest rate decision of the Central Bank of the Republic of Turkiye. The Monetary Policy Committee will announce the sixth interest rate decision of the year tomorrow. Economists expect the policy rate to be held constant.

The Central Bank of the Republic of Turkiye (CBRT) Monetary Policy Committee (PPK) will make the sixth interest rate decision of the year at the meeting chaired by Chairman Sahap Kavcioglu tomorrow.

The Central Bank left the interest rate fixed in the first 5 meetings of this year. Economists predict that the bank will not change the policy rate, which is 14%, at this meeting as well.

Ankara Haci Bayram Veli University Faculty Member Prof. Dr. Murat Cetinkaya stated that he did not think that the Central Bank would make any changes in the monetary policy, and said, “There was already a 500 basis point interest rate increase in the last 4 months of 2021. We can say that the main reason behind not making changes is a policy choice. There is a prioritized export, employment and growth.”

In addition to the interest rate decision, the messages of the board in the decision text are also important for the markets.

Cetinkaya said, “The perception of uncertainty caused by the Russia-Ukraine war will be underlined. We will clearly see there, perhaps more remarkable notes on the deterioration of high-cost increases and inflation trends on the energy side.”

Messages regarding the fight against inflation and monetary policy, which will be included in the text of the decision, will be followed carefully.

Source: Trthaber / Translated by Irem Yildiz

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