What will be the CBRT's first interest rate decision of the year? Economists' expectations...

The CBRT will hold its first MPC meeting of the new year on Thursday, January 25.

The AA Finance expectation survey for the meeting was concluded with the participation of 14 economists.

The median expectation of economists regarding the change in the policy rate was a 250 basis point increase.

According to the survey results, all participating economists predict that the policy rate will be increased by 250 basis points to 45 percent.

The median of economists' year-end policy rate expectations was 38.75 percent. In the MPC meeting held last month, the policy rate was increased by 250 basis points to 42.50 percent.

THERE HAD BEEN 7 INCREASES

The Central Bank had announced that they planned to complete the monetary tightening steps as soon as possible. The Central Bank has taken upward steps in the last 7 meetings. The total increase in interest rates this year was 34 points. The Central Bank has been tightening monetary policy since its meeting in June.

WHAT WERE THE DECISIONS DURING THE ŞİMŞEK AND ERKAN ERA?

The Central Bank ended the reduction process after 27 months by taking an upward step in interest rates at the June meeting. The committee, which held its first meeting in June under the leadership of the new governor Hafize Gaye Erkan, raised the policy rate by 6.5 points to 15 percent. The Central Bank raised the policy rate by 2.5 points to 17.50 percent at the July meeting. Continuing the interest rate hikes at the August meeting, the Central Bank raised the rate to 25 percent with a 7.5 point increase. At the September meeting, the policy rate was increased by 500 basis points from 25 percent to 30 percent. Continuing the interest rate hikes in October, the Central Bank raised the rate to 35 percent with another 500 basis point increase. At the November meeting, the policy rate was increased by 500 basis points from 35 percent to 40 percent.

News Source: 12punto