Reuters poll: Will the Central Bank raise interest rates?

Will the Central Bank of Turkey (CBRT) continue the wave of interest rate hikes initiated by Mehmet Şimşek?

All 11 economists participating in the Reuters survey before the February interest rate decision scored that the policy rate will be kept constant this month.

Fatih Karahan, who was appointed as the CBRT Governor after Hafize Gaye Erkan, gave the message that they are committed to tight monetary policy in the inflation report, which was his first public meeting, and pointed out that they should determine the level of tightness not only for this year’s inflation but also for next year’s inflation, Ekonomim newspaper reported.

Karahan said, “With the level of the policy rate and the other steps we have taken, we assess that we have reached the level of tightness required for disinflation… The fact that our policy stance will be maintained in line with our intermediate target for a longer period than envisaged in the previous report will have a positive impact on the underlying trend (of inflation).”

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