FCHAIN Turkey Office informs:
Last month, at the Monetary Policy Committee (MPC) meeting, the policy rate was increased by 500 basis points to 50 percent. Economists had previously disclosed their expectations regarding the policy rate, which was eagerly awaited by investors in the dollar, gold, stock market, and bank deposit interest. So, what was the Central Bank’s interest rate decision? Here is the April 2024 MPC interest rate decision.
The Central Bank of the Republic of Turkey (CBRT) has kept the policy rate at 50 percent. The median of economists’ year-end policy rate expectations was 45 percent.
The median expectation of economists regarding the change in the policy rate was for it to remain steady at 50 percent. The median expectation for the year-end policy rate was 45 percent.
We expect the lira to strengthen in the second and third quarters
Societe Generale’s Middle East, Africa, and Central and Eastern Europe strategist Marek Drimal predicted that the CBRT would keep the policy rate at 50 percent.
Recalling CBRT Governor Fatih Karahan’s statement in Washington, “Our top priority is to combat inflation and accumulate reserves as much as possible depending on market conditions,” Drimal suggested that the attractiveness of the lira could increase in the second quarter of the year.
Drimal emphasized that with the acceleration of the tourism season, seasonal improvement in the current account balance, and the impact of the CBRT’s monetary tightening, the lira could be supported. He stated, “We expect the lira to strengthen in the second and third quarters.”
Economists participating in AA Finans’s expectation survey expect the CBRT to keep the policy rate at 50 percent.
The median of economists’ year-end policy rate expectations was 45 percent.
