The final interest rate decision of the year is in! What is the Central Bank's interest rate decision?
The Central Bank of the Republic of Turkey (TCMB) met today to hold the final Monetary Policy Committee (PPK) meeting of the year. There was great anticipation regarding which strategy the TCMB, which has not changed the policy interest rate for a long time, would choose for December. The Central Bank has announced the interest rate decision, which was followed with intense interest in the markets. Details regarding the final interest rate decision of the year are in our report...
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The interest rate decision taken by the Central Bank's Monetary Policy Committee (PPK) is at the center of the economic agenda. The decisions taken at the final meeting of 2024 are of critical importance for the markets and economic balances. While experts shared their expectations regarding the policy rate, whether there would be a change in the interest rate, which has been kept constant for a long time, was a matter of curiosity. The Central Bank of the Republic of Turkey had kept the one-week repo auction rate, which is the policy rate, constant at 50 percent in November.
The Central Bank of the Republic of Turkey's Monetary Policy Committee held its final meeting of the year today. After a hiatus of approximately two years, the Central Bank changed the policy rate, cutting the one-week repo auction rate by 250 basis points to 47.50 percent. With this decision, the expectations for an interest rate cut, which had increased following the 30 percent raise in the minimum wage, were also met. Furthermore, the Central Bank decided that "overnight borrowing and lending rates shall be determined with a margin of +/- 150 basis points compared to the one-week repo auction rate."
WHAT IS THE TCMB DECEMBER INTEREST RATE DECISION?
The Central Bank of the Republic of Turkey announced the highly anticipated interest rate decision on December 26, 2024, at 14:00. Making its first cut to the policy rate after a hiatus of approximately two years, the Central Bank lowered the interest rate by 250 basis points to 47.50 percent.
WHAT WAS THE INTEREST RATE EXPECTATION?
Economists participating in the AA Finance expectation survey were forecasting that the Central Bank of the Republic of Turkey would cut the policy rate by 150 basis points to 48.50 percent.
The average of economists' policy rate forecasts for the end of 2025 was shaped at 29.50 percent.
WHAT WAS THE NOVEMBER INTEREST RATE DECISION?
The Central Bank of the Republic of Turkey (TCMB) Monetary Policy Committee announced the highly anticipated interest rate decision for November last month.
The committee kept the one-week repo auction rate, which is determined as the policy rate, constant at 50 percent for the 8th consecutive time.