Central Bank announces interest rate decision

The interest rate decision of the Central Bank of the Republic of Turkey (TCMB) has been announced. The TCMB Monetary Policy Committee, which held its October meeting, raised the policy rate by 5 percentage points to 35 percent, in line with expectations. Stating that a decline in the underlying trend of monthly inflation will be observed, the Central Bank noted that monetary tightening will be strengthened gradually as needed and to the extent necessary.

Medley Advisors Market Research Head Nick Stadtmiller had noted that the TCMB could raise the policy rate by 500 basis points next week.

Deutsche Bank Strategist Christian Wietoska had predicted that the TCMB would continue its interest rate hike cycle, stating that the bank would raise the policy rate by 500 basis points to 35 percent at its October meeting.

Morgan Stanley economists had announced that they expected the TCMB to raise the interest rate to 35 percent by making a 500 basis point increase at its meeting on October 26.

In the October interest rate survey, the maximum expectation was announced as 35 percent, and the minimum expectation as 32.5 percent.

On the other hand, 24 institutions also shared their forecasts for the end of 2023 during this survey period. In the October survey, the median expectation for the end of 2023 rose to 38.8 percent. The previous forecast was 35 percent.

News Source: 12punto