The International Finance Institute states that the Central Bank can raise interest rates by 250 basis points

CBRT

Uğraş Ülkü, the Director of the Central and Eastern Europe, Middle East, and Africa (CEEMEA) Research Unit at the International Finance Institute, shared his prediction on Twitter.

Ülkü forecasted that the Central Bank will increase interest rates by 250 basis points tomorrow, bringing it to 17.50%, which would remain below the 19% inflation expectation for the next 24 months.

In his post, Ülkü mentioned that a 500 basis point increase and positive real interest rates according to the expected inflation could help limit the projected rise in inflation.

According to Bloomberg HT’s survey, the median expectation was for the interest rates to rise by 500 basis points, reaching 20%.

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