Experts anticipate Türkiye to reduce interest rates by 150 basis points to 48.5 percent
Date
12/22/2024 4:04:19 AM
(MENAFN) According to a survey conducted by Anadolu on Friday, Turkey's Central bank is anticipated to reduce interest rates by 150 basis points to 48.5 percent next week. This would mark the first rate cut since January 2023, almost two years ago. The decision will be made during the Central Bank's final monetary policy committee meeting of the year, which is scheduled for next Thursday.
Among the economists surveyed, ten out of fourteen predicted that the Central Bank would lower rates at the upcoming meeting, with the expected rate falling between 47.50 percent and 50 percent. However, four economists believed that the bank would keep the interest rate unchanged. The average forecast for the policy rate at the end of 2025 was set at 29.5 percent, indicating a significant drop over the next couple of years.
In the previous monetary policy committee meeting held last month, the Central Bank decided to leave the policy rate unchanged at 50 percent. This followed a series of rate hikes that began in May 2023, when the bank raised the rate from 8.5 percent to 50 percent. Since then, the bank has kept the rate steady during its last eight meetings.
If the Central Bank proceeds with the expected rate cut next week, it would signal a shift in the country's monetary policy after a period of aggressive tightening aimed at curbing inflation. The move would be closely watched by both domestic and international markets, as it could have significant implications for Turkey’s economy moving forward.
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