All eyes on the CBRT's interest rate decision this week

The Central Bank of the Republic of Turkey (CBRT) will announce its new interest rate decision following the Monetary Policy Committee (MPC) meeting on Thursday, July 25. Economic circles have clarified their expectations ahead of the decision, which is expected to be announced at 14:00.

250 BASIS POINT CUT EXPECTED

According to the expectation survey conducted by AA Finance, in a study involving 21 economists, the majority expects the CBRT to cut the policy rate by 250 basis points to 43.50 percent. While 11 of the survey participants foresee a 250 basis point cut, 4 economists pointed to a 300 basis point cut, and 6 economists signaled a more aggressive cut of 350 basis points.

INTEREST RATE REMAINED STABLE LAST MONTH

The CBRT kept the policy rate stable at 46 percent in its MPC meeting held in June. However, in statements made for July, messages were given that interest rate cuts could begin to support the disinflation process.

The median of the year-end policy rate expectations of the economists participating in the survey is 35 percent. This indicates that gradual interest rate cuts will continue for the remainder of the year.

News Source: 12punto