Central Bank to announce interest rate decision today! Economists unite on a single forecast

The Central Bank of the Republic of Türkiye (CBRT) Monetary Policy Committee (MPC) will meet today under the chairmanship of Fatih Karahan.

Following the critical meeting, the interest rate decision for May will be announced at 14:00.

In the MPC meeting held last month, the policy rate was kept constant at the 50 percent level.

POLICY RATE EXPECTED TO REMAIN UNCHANGED

The median value of economists' expectations regarding changes in the policy rate was for the rate to be kept constant at 50 percent. The median of economists' year-end policy rate expectations was calculated at 45 percent. Among the economists who shared their year-end expectations, 2 predicted that the policy rate would be 50 percent at the end of the year, 1 predicted 47.5 percent, 5 predicted 45 percent, and 2 predicted 40 percent.

MESSAGES WILL ALSO BE CLOSELY MONITORED

The messages to be included in the decision text are also in the focus of the markets. In its last decision text, the Committee had drawn attention to the tightness in financial conditions. It had emphasized the delayed effects. It was stated that the tight stance would continue until a decline in the underlying trend of monthly inflation is achieved. In this decision text as well, messages regarding inflation developments and the monetary policy framework will be closely monitored.

MARKET PARTICIPANTS SURVEY

According to the CBRT's market participants survey, the expectation for the current month and 3 months ahead was 50 percent. The policy rate expectation for 12 months ahead also fell from 38.18 percent to 37.11 percent.