Will the Central Bank continue to raise interest rates? Here are the economists' forecasts

The Central Bank of the Republic of Turkey (CBRT) will announce its interest rate decision today at 14:00.

The bank has raised interest rates in 6 consecutive meetings since June. The interest rate was increased from 8.5 percent to 40 percent. It is expected that the interest rate hike will continue at the final meeting of the year.

WILL THE INTEREST RATE HIKE CONTINUE?

In a survey conducted by Reuters with 12 economists, the common expectation was a 250 basis point increase.

Evaluating the decision to be made by the Central Bank, Tuna Çetinkaya, General Manager of a Securities Company, stated: "Everyone around the world is talking about interest rate cuts. We are a bit late. We are trying to be careful while maneuvering on this path we have entered. Both the Central Bank Governor and Mr. Şimşek, in the messages they give, emphasize tight monetary policy while always reminding us that additional measures will be taken to overcome potential problems related to growth."

The bank's interest rate decision text will also be followed closely at this meeting. Attention will be focused on the statements to be made regarding whether the interest rate hike process has come to an end.

Regarding the interest rate hike process, Çetinkaya commented: "Perhaps it could reach a stopping point in the coming period with a message that it will follow the parameters, either in two parts in January-February or with a single tightening."

The Central Bank announced at its November meeting that it had significantly approached the level of monetary tightness required.

Economists predict that the bank will end the process after 1 or 2 more interest rate hikes.

MPC EXPECTATION SURVEY CONCLUDED

The CBRT's Monetary Policy Committee (MPC) expectation survey was concluded with the participation of 14 economists.

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

According to the survey results, the policy rate expectations of economists who foresee an increase between 250 and 500 basis points ranged between 42.50 percent and 45.00 percent.

News Source: 12punto