The day the markets have been waiting for! Central Bank to announce interest rate decision tomorrow

All eyes in the markets are turned to the fifth interest rate decision of the year, which the Central Bank of the Republic of Turkey will announce this week. The Monetary Policy Committee (MPC) will meet tomorrow under the chairmanship of Central Bank Governor Fatih Karahan to announce its decision regarding the policy rate.

In the previous MPC meeting, the Central Bank did not change the policy rate, keeping the one-week repo auction rate constant at 37 percent.

ALL EYES WILL BE ON THE DECISION TEXT

In addition to the interest rate, the language used in the decision text will also be decisive for the markets. In particular, messages regarding the inflation outlook, credit growth, domestic demand, and the future course of monetary policy will be carefully evaluated by investors.

How geopolitical developments will be reflected in the decision text is also among the topics being watched. The assessments to be included in the statement are expected to guide expectations for monetary policy in the coming period.

ECONOMIST'S EXPECTATION ASSESSMENT

According to TRT Haber, economist Tonguç Erbaş expressed his expectations regarding the meeting with the following words:

"I do not think there will be any policy change in interest rates or a decision such as a transition from overnight to weekly funding. In the text, which will only differ from the previous meeting, it will express a more optimistic inflation expectation, stating that demand has decreased, credit growth has slowed, and it expects the path to be downward in the coming days."

DECISION TO BE ANNOUNCED AT 14:00

The Central Bank's interest rate decision will be shared with the public tomorrow at 14:00. The decision to be announced and the text to be published simultaneously are expected to have an impact on the short-term expectations of financial markets.

News Source: 12punto