Foreign experts' assessment ahead of CBRT interest rate decision: They provided figures

The Central Bank of the Republic of Türkiye (CBRT) will announce interest rates on Thursday, January 25.

Foreign experts have made predictions ahead of the CBRT's interest rate announcement.

Societe Generale Central and Eastern Europe, Middle East, and Africa Strategist Marek Drimal stated that the CBRT could raise the policy rate by 250 basis points to 45 percent.

Drimal recalled that in its December meeting, the Monetary Policy Committee (MPC) anticipated completing its monetary tightening steps as soon as possible.

"TIGHT MONETARY CONDITIONS WILL CONTINUE"

Expressing that the bank might use a cautious tone, Drimal said, "The CBRT will pledge to continue quantitative and credit tightening by withdrawing liquidity from the market and keeping credit growth under control, and to maintain tight monetary conditions for a long period to ensure that inflation declines to the 5 percent target in the coming years."

Drimal emphasized that how long the CBRT will keep the policy rate at 45 percent appears to be the next main focus point for monetary policy.

WILL THERE BE AN INTEREST RATE CUT?

Noting that the bank might not cut interest rates this year to ensure that inflation slows down this year and next, Drimal stated that inflation could fall to the 41 percent level by the end of the year.

MEDLEY SAYS POLICY RATE WILL INCREASE

Medley Advisors Head of Market Research Nick Stadtmiller predicted that the CBRT would raise the policy rate by 250 basis points.

Stadtmiller stated that the bank could end its interest rate hike cycle at the January meeting.

Stating that inflation could begin to decline after peaking in May, Stadtmiller noted that the bank could move toward interest rate cuts afterward.

The median of economists' year-end policy rate expectations was 38.75 percent.

News Source: 12punto