The Central Bank is expected to raise interest rates by 500 basis points this week

Central Bank of the Republic of Turkey

Turkish Republic Central Bank President Hafize Gaye Erkan and the Monetary Policy Committee led by her are expected to face another challenging test this week.

The decision of the Monetary Policy Committee, which raised the policy rate by 650 basis points below expectations in the June meeting, is eagerly awaited for the meeting on July 20th.

Economists predict that the Monetary Policy Committee (MPC) of the Central Bank of the Republic of Turkey (CBRT) will raise the one-week repo auction rate (policy rate) by 500 basis points to 20.00% in the upcoming MPC meeting.

According to AA Finans’ survey of expectations for the CBRT’s MPC meeting, which will take place on Thursday, July 20th, 20 economists participated in the survey.

The median expectation of economists regarding the change in the policy rate was an increase of 500 basis points.

The median year-end interest rate expectation is 28.5%.

According to the survey results, economists predicting an increase between 250 and 650 basis points had policy rate expectations ranging from 17.50% to 21.50%, while year-end policy rate expectations ranged from 25% to 50%.

The median expectation of economists for the year-end policy rate is 28.50%.

In the previous MPC meeting held last month, the policy rate was increased by 650 basis points, raising it from 8.50% to 15%.

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