Investors are increasing bets the central bank will keep the benchmark interest rate at a record low this week on speculation that inflation will slow.
Three-month forward-rate agreements fell five basis points to 9 percent, the first decline since June 10, at 2:50 p.m. in Istanbul. Six-month cross-currency swaps dropped three basis points to 7.1196 percent, the biggest decline since May 24.
Policy makers will probably leave their benchmark rate at 6.25 percent when they meet June 23, according to the median of 14 estimates in a Bloomberg survey. Lower fruit prices will probably help curb inflation after it accelerated to a six-month high of 7.2 percent in May, the central bank said June 6.
“Food prices will surprise on the downside and central bank will not hike rates on Thursday,” Isik Okte, a trader at Finans Invest, said in e-mailed comments.
The two-year benchmark bond yield fell five basis points, or 0.05 percentage point, to 9.03 percent, data compiled by Bloomberg showed.
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