Central Bank to announce the first interest rate decision of the year! Markets unite on a single forecast

The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (MPC) will meet today under the chairmanship of Fatih Karahan. The first interest rate decision of 2025 will be announced at the critical meeting, which the markets are watching closely.

Market expectations are that the interest rate cut cycle will continue. Accordingly, it is considered certain that the policy rate will be reduced from 47.5 percent to 45 percent.

RECORD CUT CYCLE FORECASTED

According to NTV, economists estimate that the policy rate will decline to the 30 percent level by the end of the year. According to bankers, the markets are pricing in a 17.5 percentage point interest rate cut by the end of 2025. These expectations point to the largest interest rate cut cycle since the beginning of the 2000s.

FIRST INTEREST RATE CUT AFTER 22 MONTHS

In December, the CBRT had reduced the policy rate by 250 basis points to 47.5 percent. This marked the first interest rate cut in 22 months.

8 MEETINGS TO BE HELD

The Central Bank had announced that it would hold 8 meetings instead of 12 in 2025.

The date for the second MPC meeting of the year has been set for March 6.