The Central Bank of the Republic of Turkey (CBRT), under the leadership of Hafize Gaye Erkan, announced its interest rate decision for July following the second Monetary Policy Committee (MPC) meeting.
According to the announcement, the Central Bank of the Republic of Turkey (CBRT) has raised the policy interest rate from 15% to 17.5%.
The general market expectation for the July MPC meeting was that interest rates would rise to 20%.
Some foreign institutions chose not to share interest forecasts for this meeting, citing uncertainty, while other institution representatives’ forecasts varied between a change of 250 and 650 basis points.
Before the meeting that began the Central Bank’s cycle of 650 basis points of interest rate increases, the interest rates were kept constant at 8.5% in the last three meetings.
The most important development for the markets until the next interest rate decision will be the Inflation Report meeting to be held next week.
This meeting, where the Central Bank will announce its inflation forecast, will be held on July 27th. It is expected that Hafize Gaye Erkan, the President of the Central Bank, will make her first presentation at the Inflation Report meeting.
